Adam Neumann, Co-Founder of WeWork, Approaches a Deal with SoftBank

Co-founder and former WeWork CEO Adam Neumann is in advanced talks to resolve a high-profile legal dispute with SoftBank Group Corp. by accepting a nearly $ 500 million cut in his payment from the new owner of the space company. office sharing, a move that would help clear the way for WeWork’s second attempt to go public.

Under the terms being discussed, SoftBank would spend approximately $ 1.5 billion to buy the shares of early investors and WeWork employees, including nearly $ 500 million to buy Neumann shares, in both cases about half of what it originally agreed to. , according to people. familiar with the talks.

SoftBank acquired a majority stake in WeWork after its initial public offering attempt collapsed in 2019 when public investors refused to buy shares in the money-losing company and Neumann’s conflicts of interest and erratic behavior. Neumann resigned under pressure as CEO in the wake of the IPO debacle.

The negotiations have been difficult at times and there is no guarantee that they will produce a deal, but if there is one, it could be finalized in the next few days, the people said.

Should there be a deal, it could be followed by another deal, as WeWork is also in talks to merge with a special-purpose acquisition company, a move that would eventually make it a public company.


Source link