ADVERTISEMENT

SoftBank is reportedly paying WeWork founder Adam Neumann $1.7 billion to step off the board

SoftBank is about to take control of WeWork, as the office-sharing firm battles to stay afloat, according to a Wall Street Journal report .

Adam Neumann
  • WeWork founder and former CEO Adam Neumann is set to receive almost $1.7 billion from the Japanese investor as part of the deal, which will see him step off the board, the Journal reported. Neumann will reportedly sell about $1 billion in shares to SoftBank, plus receive an additional loan and consulting fee.
  • Business Insider earlier reported that Neumann will also give up his voting shares as part of the bailout.
  • WeWork had also been subject to a competing takeover bid by JPMorgan, but it looks like SoftBank has won out.
  • Read all of Business Insider's WeWork coverage here .
ADVERTISEMENT

WeWork's main backer SoftBank will reportedly pay cofounder and ex-CEO Adam Neumann almost $1.7 billion as part of a takeover deal that will see him resign from the firm's board.

The Wall Street Journal reported on Tuesday morning that SoftBank had won the takeover bid for WeWork, which is battling to stay afloat.

WeWork and SoftBank have not commented on the report.

ADVERTISEMENT

Business Insider earlier reported that WeWork's board would be reviewing competing takeover bids from SoftBank and JPMorgan on Tuesday.

Neumann is, according to the Journal, expected to sell $1 billion worth of stock to SoftBank. The Japanese firm has invested around $10 billion in the company to date.

He will also receive a $185 million "consulting fee", as well as $500 million in credit.

Neumann resigned as WeWork's CEO in September, with CFO Artie Minson and another exec Sebastien Gunningham taking over as co-CEOs.

More follows...

ADVERTISEMENT

See Also:

FOLLOW BUSINESS INSIDER AFRICA

Unblock notifications in browser settings.
ADVERTISEMENT

Recommended articles

Detained Binance executives sue Nigerian authorities for human right violation

Detained Binance executives sue Nigerian authorities for human right violation

Nigeria's central bank increases minimum capital base for banks

Nigeria's central bank increases minimum capital base for banks

Sony’s creators convention redefines the creative landscape for content creators

Sony’s creators convention redefines the creative landscape for content creators

Egypt, Nigeria, and South Africa ranked as Africa's most polluted countries in new report

Egypt, Nigeria, and South Africa ranked as Africa's most polluted countries in new report

10 African countries with the lowest life expectancy according to the World Bank

10 African countries with the lowest life expectancy according to the World Bank

Kenyan women are more obese than their men - here’s why

Kenyan women are more obese than their men - here’s why

Africa’s richest man Dangote stands between Europe and $17 billion in revenue

Africa’s richest man Dangote stands between Europe and $17 billion in revenue

After months of exchanging blows, Kenya and Uganda takes steps towards resolution

After months of exchanging blows, Kenya and Uganda takes steps towards resolution

Africa's first black billionaire could join $2.9 billion Vivendi bid for MultiChoice

Africa's first black billionaire could join $2.9 billion Vivendi bid for MultiChoice

ADVERTISEMENT