Adam Neumann, co-founder of WeWork, and SoftBank Group Corp, have neared a settlement agreement that would cut the former CEO’s payout by USD500 million for 25% of his shares in the company, according to sources with knowledge of the matter.
The prolonged battle between Neumann and SoftBank in 2019 has stalled SoftBank’s efforts to take the co-working space company public.
SoftBank is in discussion to purchase approximately USD1.5 billion shares from WeWork investors and employees, including approximately USD500 million shares from Neuman.
As part of the multi-dollar bailout of WeWork, SoftBank has initially offered to pay USD3 billion for stock owned by Neumann, however, after the pandemic had reduced the number of WeWork’s locations, the Japanese conglomerate withdrew the offer.
According to sources, SoftBank reached out to WeWork following a report that the co-working company was in talks to combine with a SPAC affiliated with Bow Capital Management.
Discussions between the Japanese conglomerate and Neumann were first reported by the Wall Street Journal.