SoftBank reaches manage WeWork
Net investor SoftBank Group said Saturday it reached a settlement with WeWork co-founder Adam Neumann and other investors at work sharing huge, amid reports that the offer would supply the ex-CEO an extra $50 million.
SoftBank Group didn't release information on the agreement that sets to rest a bitter dispute emerging from the Japan-based firm's 2019 decision to bail out WeWork, once regarded as a soaring unicorn but which quickly spiralled into deep problems as it lost funds and cancelled its eagerly waited show offering.
Beneath the deal, the Wall Street Journal reported, SoftBank Group would purchase about $1.5 billion of stock from other investors, including nearly $500 million from Neumann, roughly a half of what it at first planned to buy.
But the deal would supply the controversial founder a $50 million windfall, another $50 million to cover his legal service fees and prolong by five years a $430 million SoftBank Group mortgage loan, according to reports.
Neumann and WeWork investors had sued SoftBank claiming the investment firm breached its obligations by backing out of a good $3 billion rescue program.
"This agreement may be the consequence of all parties arriving at the table for the sake of doing what is best for the future of WeWork," Marcelo Claure, executive chairman of WeWork and chief operating officer of SoftBank Group.
"With this kind of litigation behind us, all of us are fully centered on our mission to reimagine the workplace and continue to meet up with the growing demand designed for flexible space all over the world."
WeWork was a dazzling unicorn valued at $47 billion, and SoftBank's founder Masayoshi Son had openly hailed Neumann's vision.
But things commenced to unravel as the strong shed cash and cancelled its share offering, with the ex-CEO pushed out -- albeit with a generous offer.
Source: japantoday.com
