Without the Softbank bailout deal, reeling space-sharing company WeWork would have been out of money by the end of next week, sources tell CNBC’s David Faber.

WeWork announced Tuesday that Japanese conglomerate SoftBank will provide $5 billion in new financing and up to $3 billion in a tender offer for existing shareholders. SoftBank will also speed up an existing $1.5 billion financing commitment.

After closing, and following the tender offer, SoftBank’s fully diluted economic ownership of WeWork will be approximately 80%.

WeWork also said it will appoint SoftBank Chief Operating Officer Marcelo Claure as its executive chairman while former WeWork CEO Adam Neumann will become a “board observer.”

Revelations that WeWork was about one week from running out of cash comes on the heels of a slew of bad news for the company since it released its IPO prospectus in August. The filing revealed a massive $900 million loss in the first six months of 2019. It also reported at the time that it had long-term lease obligations of $17.9 billion.

Estimations of the company’s value have declined quickly since then. What was once expected to be one of 2019’s hottest IPOs at a value of $47 billion has turned into a string of mishaps that’s seen the company’s value sink to around $8 billion.

Co-CEOs Artie Minson and Sebastian Gunningham replaced founder Neumann in September after he drew investor ire for his unusual leadership style and apparent conflicts of interest.

CNBC’s Faber first reported on Monday that SoftBank would bail out WeWork’s parent company, The We Co.

The Wall Street Journal reported on Tuesday that the SoftBank deal would hand Neumann as much as $1.7 billion in exchange for his agreement to step down as chairman and surrender his voting rights.

Originally published at CNBC

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