Bulletin
Investor Alert

New York Markets Open in:

The Wall Street Journal Archives | Email alerts

Dec. 9, 2019, 9:20 p.m. EST

SoftBank to sell Wag stake back to startup, marking another setback for Japanese investing giant

new
Watchlist Relevance
LEARN MORE

Want to see how this story relates to your watchlist?

Just add items to create a watchlist now:

  • X
    SoftBank Group Corp. (9984)

or Cancel Already have a watchlist? Log In

By Cara Lombardo


Wag/Wall Street Journal
Startup Wag enables people to hire dog walkers and dog boarders on its platform.

SoftBank Group Corp.’s /zigman2/quotes/207303954/delayed JP:9984 -2.60%   Vision Fund has agreed to sell its nearly 50% stake in Wag Labs Inc. back to the struggling dog-walking startup, according to people familiar with the matter, marking another disappointment for the Japanese investing giant.

Wag, which earlier this year laid off several dozen employees, is letting go a significant amount of the remainder of its workforce today, according to one of the people and an internal memo viewed by The Wall Street Journal.

In a memo sent to Wag employees Monday, Chief Executive Garrett Smallwood said: “We are amicably parting ways with SoftBank and SoftBank will no longer have board representation.”

Read: SoftBank shareholders criticize company after WeWork wipeout

He added: “Today, we said goodbye to a number of our friends and colleagues as we align our organization with the needs of our business.”

Through its app, Wag offers on-demand dog-walking services around the U.S. through a network of tens of thousands of dog walkers. Its other investors include venture firms General Catalyst, Battery Ventures and Acme.

An expanded version of this report appears on WSJ.com .

Popular on WSJ.com :

The Patriots Have a Tom Brady Problem

New Zealand Volcano Eruption Kills Five, With Eight More Missing and Feared Dead

/zigman2/quotes/207303954/delayed
JP : Japan: Tokyo
¥ 6,375.00
-170.00 -2.60%
Volume: 16.13M
Sept. 23, 2020 3:00p
P/E Ratio
N/A
Dividend Yield
0.00%
Market Cap
¥12739.81 billion
Rev. per Employee
¥126.96M
loading...

This Story has 0 Comments
Be the first to comment
More News In
Industries

Story Conversation

Commenting FAQs »
Link to MarketWatch's Slice.