Former WeWork CEO may get a massive payout from SoftBank
The former CEO of SoftBank, Adam Neumann, who left the startup amidst a scandal, is said to be getting a huge amount of money from SoftBank as part of a settlement deal.
Neuman left the company in 2019 after he attempted to steer WeWork into a public company backfired. The former CEO also has up to $500 worth of shares in WeWork worth up to $1.5 billion.
Legal issues between Neumann, WeWork, and SoftBank
There is a current legal issue between Neumann, WeWork, and SoftBank drawn out by Softbank's departure from a sales deal that would have been worth $3 billion. Although the current deal was reported by the Wall Street Journal and sources close to the issue, the deal might still fall through.
The current deal is way less than the initial $3billion that was offered by SoftBank when WeWork was going through financial turmoil. Neumann left the company in 2019, and he had planned to sell almost $1 billion of his shares to SoftBank.
Neumann was able to raise billions of dollars for WeWork, and he had invested the money in building different branches of the co-working business worldwide. During the height of its popularity, WeWork was valued at $47 billion in one investment round.
WeWork could not become a public company after some irregularities were discovered
WeWork could not go public because some irregularities were discovered in the company's IPO documents. The IPO showed that Neumann had unlimited power in WeWork and that the company was operating at a loss. This led Softbank to leave the sales deal.
SoftBank explained its reasons for leaving the sales deal, saying WeWork had failed to meet certain conditions and that the company currently had multiple criminal cases against it.
WeWork still plans to take the company public after the departure of its former CEO. It is currently pursuing a potential merger with a SPAC agency.