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SoftBank abandons plan for $3bn WeWork tender offer

Tech group nixes part of bailout but expects profit from T-Mobile/Sprint merger

SoftBank's pullout casts doubt over $1.1 billion of additional debt financing that was was linked to the deal, though the Japanese tech group says it remains committed to WeWork. (Photo by Yuki Kohara) 

TOKYO -- SoftBank Group is backing out of a $3 billion tender offer for shares in WeWork in a move that threatens to spark legal action and escalate tensions with the founder and early backers of the U.S. coworking space provider.

The reversal casts further doubt over the future of WeWork, one of the Japanese tech group's highest profile investments, which has struggled since its plan for an IPO was scrapped last year. The work space service also faces questions over its business model amid the coronavirus pandemic.

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