Former WeWork CEO, Adam Neumann, will reportedly get a $1.7 billion deal to walk away from the company and give up his voting rights by skleb1234
Topline:The WeWork board accepted SoftBank’s rescue deal on Tuesday, turning down an alternative financing proposal from JPMorgan Chase,SoftBank’s takeover will see the Japanese conglomerate give a $5 billion debt package to WeWork, in a deal that values the company at—an 83% decline from the $47 billion valuation SoftBank first invested at in January.
As part of the bailout package, SoftBank will pay $1 billion to buy out Neumann’s shares, a $185 million consulting fee and $500 million in credit to help him repay his loans to JPMorgan, according toSoftBank executive Marcelo Claure is expected to replace Neumann as chairman of the board and potentially find a new CEO to replace current co-chiefs Artie Minson and Sebastian Gunningham, who took the reigns after Neumman’s ouster and immediately began cutting costs to keep the company afloat.
Neumann will remain a board observer and maintain a small stake in the company—which will fall below 10% after he sells his shares to SoftBank.Key background: Once one of the country’s most valuable startups, WeWork has imploded over the last month and a half. Amid growing concerns about WeWork’s business model and corporate governance, Neumann
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