SoftBank would buy about 25% of Adam Neumann’s stake in WeWork for $480 million under proposed settlement

SoftBank would buy about 25% of Adam Neumann’s stake in WeWork for $480 million under proposed settlement

 

WeWork co-founder Adam Neumann and SoftBank are nearing a settlement agreement that; would entitle the former CEO to a payout of $480 million for approximately 25% of his shares in the company; a person familiar with the matter said.

 

That is half as many shares as SoftBank originally intended to buy, this person said.

 

Should a deal be finalized, SoftBank would purchase approximately $1.5 billion of shares from early WeWork investors.

 

The deal would represent 10.5% of WeWork shares, with the price at $19.19 per share; which is the price that was initially agreed upon, the person said.

 

 

ALSO READ: SoftBank-backed face-scan firm rebrands US unit to add distance after blacklisting

 

 

Neumann would remain a major shareholder in the company.

SoftBank reached out to Neumann following a report last month; that WeWork was in talks to combine with a SPAC affiliated with Bow Capital Management, the source said.

 

Talks between Softbank and Neumann were first reported on Monday by the Wall Street Journal.

About The Author

Osigweh Lilian Oluchi is a graduate of the University of Lagos where she obtained a B.A (Hons) in English, Masters in Public and International affairs (MPIA). Currently works with 1stnews as a Database Manager / Writer. [email protected]

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