SoftBank turns against WeWork's parent CEO Neumann-sources
), the biggest investor in WeWork owner The We Company, is exploring ways to replace Adam Neumann as chief executive of the U.S. office-sharing start-up, four people familiar with the matter said on Sunday.
This was a blow for SoftBank, which was hoping for We Company’s IPO to bolster its profits as it seeks to woo investors for its second $108 billion Vision Fund. It invested in We Company at a $47 billion valuation in January, yet stock market investor skepticism led to the start-up considering a potential valuation in the IPO earlier this month of as low as $10 billion, Reuters reported.
Benchmark, SoftBank and Chinese private equity firm Hony Capital each have one representative on We Company’s seven-member board, that includes Neumann. Hony Capital’s position on whether Neumann should remain CEO could not immediately be learned. One option that SoftBank is considering is asking Neumann to become interim CEO while a headhunting firm is hired to find an external replacement, the first source said.
Were a board challenge against Neumann to prove successful, it could follow the template of Uber Technologies Inc . Neumann also entered into several transactions with We Company over the years, making the company a tenant in some of his properties and charging it rent. He has also secured a $500 million credit line from banks using company stock as collateral.
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