WeWork has been thrown a multi-billion-dollar lifeline from Softbank that will give the Japanese company more control of the troubled property start-up.
In a statement, Softbank said it would provide $5bn (£3.9bn) in new financing and up to $3bn for existing shareholders. The deal will see Softbank increase its stake in the US office-space sharing start-up to roughly 80%.
Co-founder Adam Neumann will leave the board but retain “observer” status.
The deal marks the end of a tumultuous period for WeWork – once valued at nearly $50bn – that saw Mr Neumann step down as chief executive as questions over his leadership emerged.
The former boss is expected to be handed a sizable payout. Bloomberg reported the deal could see Mr Neumann receive nearly $1.7bn as he sells his shares in the company and through other fees.
Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.
