Wall Street Journal: SoftBank Group Corp. has scrapped a planned $16 billion investment in WeWork Cos., and is opting for a smaller deal of about $2 billion.

SoftBank is already a major investor in WeWork having committed more than $8 billion, partly from the Japanese company’s giant tech-investment fund.

Within SoftBank, the strong support for WeWork has been controversial. Several executives questioned the lofty valuation of a company primarily focused on real estate. WeWork has been doubling its revenue every year for the past few years. But the costly renovations associated with expansion have led to heavy losses.

The New York-based business spent twice as much as it made in the first nine months of 2018, posting revenue of $1.2 billion and a net loss of about $1.2 billion. Revenue doubled over the same period in 2017, while losses nearly quadrupled.

WeWork has said the rising losses reflect its heavy investment in growth, and that its individual locations are profitable once they are leased.