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Litigation is expensive, but I doubt it's going to cost SoftBank anywhere near $3B (unless they lose, which they probably won't).
by xenospn 7y ago
Litigation is expensive, but I doubt it's going to cost SoftBank anywhere near $3B (unless they lose, which they probably won't).
- toomuchtodo 7y agoSoftBank just has to wait for WeWork to exhaust its cash reserves. It's clear SoftBank will take whatever steps are necessary for the deal to close and them light another $3B on fire. From a paywall FT article [1] quoted in Matt Levin's piece ("WeWon't") on this: > "Thousands of WeWork tenants have refused to pay rent or sought to terminate their leases over the past month, heaping pressure on the lossmaking group as its occupancy level and cash pile dwindles" [1] https://www.ft.com/content/78dbfb03-f47d-41f3-9bf6-6696e5ef626b https://www.ft.com/content/78dbfb03-f47d-41f3-9bf6-6696e5ef6...
- tonyhb 7y agoRan through some numbers from their S1's and Harvard Business School's anaylsis. By mid Q3 they'll be out of cash at their current burn with no new money, given their 2020 obligations.