WeWork & # 39; s Adam Neumann reportedly gets as much as $ 1.7 billion
Former WeWork CEO Adam Neumann will get about $ 1.7 billion away from the company and give up voting rights, the Wall Street Journal said Tuesday morning. SoftBank will pay Neumann $ 1 billion for its shares, a $ 185 million consulting fee and will offer him $ 500 million in credit, according to the report.
SoftBank is in advanced negotiations to take control of WeWork, a decision that could come as soon as Tuesday, CNBC reported Monday. SoftBank plans to spend between $ 4 and $ 5 billion in additional financing and to purchase existing shares. The deal will value WeWork between $ 7.5 and $ 8 billion on pre-financing basis. WeWork's valuation was about $ 47 billion before the failed IPO.
In the IPO prospectus, released in August, WeWork revealed that it reported revenue of $ 1[ads1].54 billion and a net loss of more than $ 900 million for the first six months of 2019. Neumann resigned as CEO and released some of its voting power on September 24 before WeWork withdrew its S-1 filing on September 30. Without a cash infusion, WeWork would run out of money in mid-November.
Before WeWork's problems began, Neumann paid at least $ 700 million in stock sales and loans borrowed against his stock.
Read more at The Wall Street Journal.
CNBC's Alex Sherman and David Faber contributed to this report.
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