SoftBank plans $5 billion rescue financing for WeWork

SoftBank Group Corp. is in discussions to provide WeWork with roughly $5 billion of rescue financing in an effort to salvage one of the Japanese conglomerate’s biggest investments.

The funds will come directly from SoftBank, rather than its Vision Fund, according to a person familiar with the matter who asked not to be named because the talks are private. SoftBank, which already owns about one-third of WeWork, would not amass a majority of voting rights, though its stake would increase, the person said. Part of the package may include non-voting preferred stock.

News of the financing talks sent WeWork’s bonds to their biggest gain on record Wednesday. The jump of more than 8 cents on the dollar erased a record plunge a day earlier.