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SoftBank set to invest more than $3 billion in WeWork

SoftBank is close to finalizing an investment in WeWork, a source close to the transaction tells CNBC. The deal is expected to be worth over $3 billion.

The investment being discussed is a $2 billion primary tranche of funding, followed by a secondary round worth more than $1 billion. SoftBank may increase the size of the secondary investment to nearly $2 billion, the source said, for a total investment of nearly $4 billion in the shared space real estate startup.

For WeWork insiders, there is a tender offer on the table at around $44.10 per internal share. If the deal closes, WeWork would be valued at more than $20 billion. The most recent investment into WeWork valued the New York-based company at about $17 billion.

In December, Masayoshi Son, the Japanese billionaire who control SoftBank, promised Donald Trump he would invest $50 billion in the United States.

WeWork South Lake Union labs in Seattle.
WeWork Corp.
WeWork South Lake Union labs in Seattle.

Last month, The Wall Street Journal reported that SoftBank was considering an investment of "over $1 billion" in WeWork. However, CNBC's source said that Softbank has increased its interest and cash infusion plans since The Journal first published its story.

When reached for comment by CNBC, a spokesperson for WeWork would not confirm details. SoftBank did not immediately respond to CNBC's request for comment.

Over the past two years, WeWork has raised more than $1 billion from firms such as Goldman Sachs, Benchmark and China-based Hony Capital. It is aggressively expanding into new cities, and now has more than 150 locations in 15 countries.