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.
- 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.
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.
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...