Softbank will inject nearly $10 billion into WeWork as part of a bailout scheme to achieve greater control of the beleaguered property behemoth.

The funding package will include $5 billion (£3.9bn) in new financing, as well as the launch of a tender offer of up to $3 billion (£2.3bn) for existing shareholders, Softbank confirmed yesterday.

Part of this deal will see the Japanese investment group “accelerate” an existing commitment to provide $1.5 billion in funding for WeWork.

Announcing the funding package, SoftBank chairman and CEO, Masayoshi Son, commented: “It is not unusual for the world’s leading technology disruptors to experience growth challenges as the one WeWork just faced.

“Since the vision remains unchanged, SoftBank has decided to double down on the company by providing a significant capital infusion and operational support. We remain committed to WeWork, its employees, its member customers and landlords.”

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SoftBank currently owns around one-third of WeWork. However, a following the tender offer, the company’s ownership of WeWork will stand at 80%.

Despite owning a hefty portion of WeWork, SoftBank insisted it will not hold a majority of voting rights. Instead, the New York-based company will be treated as an associate, rather than a subsidiary.

The cash injection appears to mark the end of a difficult period for WeWork. The company has expected to float on a valuation of $47 billion, however, investor concerns over the firm’s losses and business model saw the valuation plummet to $8 billion.

CEO and co-founder Adam Neumann stepped down amid concerns over his leadership and was replaced by Artie Minson and Sebastian Gunningham, both of whom currently serve as co-CEOs.

Marcelo Claure will take over as executive chairman of the WeWork board as part of the funding deal.

While Neumann will leave the board, he will retain “observer” status, SoftBank confirmed. He is also set to receive a significant payout through the deal. In total, Neumann could be handed nearly $1.7 billion through selling shares in the company, as well as other associated fees.

SoftBank has offered to purchase around $1 billion of his shares and advance $500 million in loans. Additionally, the company will pay him a significant “consulting fee” of $185 million.

Reacting to the funding package, Minson & Gunningham said: “This financing provides WeWork with the capital to fully realise its objective of being the partner of choice to our members and landlords, while at the same time providing a platform for growth and capital returns for shareholders and employees.

“We will have the flexibility to continue streamlining our assets and stabilising the business without sacrificing our global brand.”