SoftBank Announces Settlement With WeWork Founder Adam Neumann
2 months ago
SoftBank Group Corp. (“SoftBank”) today announced that it has entered into a settlement agreement with the Special Committee of the Board of Directors of WeWork Inc. (formerly referred to as The We Company) (“the Special Committee”) and WeWork’s founder, Adam Neumann. The terms of the settlement are confidential. When completed, the settlement agreement would resolve all claims brought in a lawsuit in the Delaware Court of Chancery, and is in the best interests of all parties.
“This agreement is the result of all parties coming to the table for the sake of doing what is best for the future of WeWork. SoftBank and WeWork have spent the past year transforming the WeWork business and executing on our plan towards profitability. With this litigation behind us, we are fully focused on our mission to reimagine the workplace and continue to meet the growing demand for flexible space around the worl
People familiar with the matter say that the deal sets Neumann apart from other WeWork shareholders
The deal calls for SoftBank to shell out the 41-year-old the $50million payout and also extend a $430million loan it had given him in late 2019 by five years
Neumann s legal fees will also be paid by SoftBank
The terms still being discussed would see SoftBank spend $1.5bn to buy shares of early WeWork investors and employees, including $500m from Neumann
But the original plan would have seen $1bn of Neumann s shares purchased
SoftBank took a majority stake in WeWork after its attempted initial public offering collapsed in 2019
The extra payment to Mr. Neumann could reopen old wounds with WeWork employees and investors, who were furious when the $185 million payout became public.
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