Adam Neuman to get $1.7 billion buyout in deal to rescue WeWork

WeWork co-founder will get a $1.7 billion buyout as part of a takeover deal to rescue the company.

Marcy Oster, JTA,

Adam Neumann
Adam Neumann
Reuters

WeWork co-founder Adam Neumann will get a $1.7 billion buyout as part of a takeover deal to rescue the company.

The SoftBank Group Corp., a Japanese conglomerate and WeWork’s largest shareholder, will put $13 billion into a company that is valued at $8 billion.

Neumann, 40, an Israeli who grew up on a kibbutz, was forced out as chief executive last month but has remained chairman of the WeWork parent firm, We Co. Under the bailout, the Israel native will step down from the board but remain an observer and hold a minority stake, The Wall Street Journal reported.

The deal will give SoftBank 80 percent ownership of the company, which at the beginning of the year was valued at $47 billion and heading for an initial public offering. The IPO has been delayed, however as the company suffered a major devaluation amid investors’ fears over the charismatic but unpredictable Neumann’s control of the firm.

According to the report, Neumann has promised to work exclusively with the company for four years. In addition, SoftBank will extend Neumann credit to help him repay a $500 million loan program led by JPMorgan and pay him a $185 million consulting fee.




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