SoftBank Versus JPMorgan's WeWork Rescue Deals

SoftBank Versus JPMorgan's WeWork Rescue Deals

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Business

University

Hard

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The transcript discusses the financial challenges faced by a company, including a $10 billion financing mix of equity and debt, and a $3 billion tender offer. Leadership changes are also highlighted, with Adam Newman potentially stepping down and Marcelo Claure from SoftBank taking over. The company is considering a $5 billion debt offering from JP Morgan, weighing the pros and cons of each option. The company's valuation has dropped from $47 billion to $8 billion, impacting existing investors. SoftBank's potential increased stake and reduced average price are discussed, along with the company's need to cut costs and sell assets to stay afloat.

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5 questions

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1.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What are the two main financial options available to WeWork as discussed in the video?

A $5 billion financing mix from SoftBank and a $10 billion debt offering from JP Morgan

A $15 billion debt offering from SoftBank and a $5 billion equity offering from JP Morgan

A $20 billion equity offering from SoftBank and a $10 billion loan from JP Morgan

A $10 billion financing mix from SoftBank and a $5 billion debt offering from JP Morgan

2.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Who is expected to replace Adam Neumann as chairman if the SoftBank deal goes through?

Jamie Dimon

Marcelo Claure

Larry Page

Masayoshi Son

3.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What was WeWork's valuation in January, and what has it reportedly fallen to?

$47 billion to $8 billion

$60 billion to $15 billion

$50 billion to $10 billion

$40 billion to $5 billion

4.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What potential benefit does SoftBank see in increasing its stake in WeWork despite the company's declining valuation?

Acquiring WeWork's real estate assets

Gaining complete control over WeWork's operations

Reducing their average purchase price and potential upside if WeWork goes public

Eliminating all existing investors

5.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What measures is WeWork reportedly taking to address its urgent financial situation?

Selling recently acquired companies and a corporate jet

Hiring more staff

Expanding into new markets

Increasing employee salaries