SoftBank Group Corp. told shareholders of WeWork that it could withdraw from an agreement to buy $3 billion (¥321.4 billion) of stock in the embattled coworking business, casting doubt on a deal that had been set to close in about two weeks.
In a message to stockholders reviewed by Bloomberg, the conglomerate cited numerous government inquiries into WeWork, including those from U.S. attorneys, the Securities and Exchange Commission, attorneys general in California and New York, and the Manhattan district attorney.
Spokeswomen for SoftBank and WeWork parent company We Co. declined to comment. The Wall Street Journal reported the email to shareholders earlier Tuesday.