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A scam is hurting India’s economy in the grip of a slowdown

India’s gems industry employs almost 5 million workers and contributing about 7% of the GDP.

SoftBank Group

Dec 12, 2019, 02.16 PM IST

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Japan's Soft Bank Group to invest Rs 30,000 crore in renewable energy in Gujarat

The announcement was made at a meeting between chief minister Vijay Rupani and Executive Chairman of SB Energy Manoj Kohli. The investment will be in solar energy, wind energy and other unconventional renewable energy sources.

Co-living bucks realty slump as firms, investors troop in

India’s residential real estate market is facing its most prolonged slump in recent...

Lenskart FY19 loss narrows, topline jumps 56%

Total expenses for fiscal year 2019 came in at Rs 514.52 crore, up about 20% compared to the ye...

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  • WeWork secured a $9.5 billion rescue package from SoftBank in October, a deal that will hand 80% of the company to the Japanese conglomerate after a tumultuous few months that saw WeWork turn from one of the most valuable startups to a cautionary tale.

    The depleting market value of global startups has raised alarm bells about loss-making ventures and their business models. The focus, therefore, is growth with profitability, said founders and investors who attended The Economic Times Awards for Corporate Excellence, 2019.

    WeWork Chairman Marcelo Claure has left a bad taste in the mouth.

    The rise in total expenses comes at a time when the company has been expanding aggressively into overseas markets, particularly in China, where it has committed huge amount of capital, along with the US and the UK.

    Wag’s troubles have been particularly pronounced. After its investment, the Vision Fund brought in Hilary Schneider, former chief executive of LifeLock, to lead an aggressive expansion. But it lost ground to Rover, its top competitor. Reports of lost dogs and internal struggles hurt business.

    The discussions at SoftBank center around shrinking a $3 billion tender offer for WeWork shares owned by founders, employees and investors, according to people with knowledge of the talks. Such a move would be designed, at least in part, to limit the amount paid to co-founder Adam Neumann, said the people, who requested anonymity because the matter is private.

    The companies owe solar and wind power generators including Goldman Sachs-backed ReNew Power and Softbank-backed SB Energy over 97 billion rupees ($1.35 billion), according to the Central Electricity Authority, an arm of the federal power ministry. Commercial banks are unwilling to lend to these firms because of their high outstanding debt.

    Ultimate control of the company now rests with SoftBank and WeWork's new Executive Chairman Marcelo Claure. Claure had told employees in an email on Monday that job-cutting will start "in earnest" this week in the United States, saying WeWork was "going to eliminate and scale back certain functions and responsibilities."

    According to a source, WeWork would lay off 2,000 to 2,500 employees and an additional 1,000 employees will leave as WeWork sells or closes down non-core businesses. Further, roughly 1,000 building maintenance employees will be transferred to an outside contractor

    When asked about the development, a SoftBank spokesperson said, “We don’t comment on speculation.”

    For TikTok to be a true success, it needs to appeal to the likes of Nike, Coca-Cola and McDonald’s. Its advertising business is ready to take off because it has direct access to that all-powerful youth demographic.

    The third-largest U.S. wireless carrier will go to trial on Dec. 9 to fight a state attorneys general lawsuit that alleges the merger would be harmful to consumers. T-Mobile said Legere will remain CEO until April 30, and will be succeeded by Chief Operating Officer Mike Sievert. Legere will continue to be a member of T-Mobile's board.

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