SoftBank, which is already WeWork's largest investor, also offers to buy up to $ 3 billion of stock from existing investors and shareholders. SoftBanks Vision Fund will also exchange all of its interests in regional WeWork joint ventures across Asia, except the Japanese joint venture, for shares in WeWork.
SoftBank's shares fell 2.5% in Tokyo after the deal was announced.
The announcement did not reveal details of Neumann's payout, but the WeWork founder could get off with up to almost $ 1.7 billion. Softbank's offer to buy Neumann's shares has been capped at $ 975 million, and the package includes an additional $ 500 million loan to repay a credit line, plus a $ 185 million "consulting fee" for SoftBank, the person familiar with the matter said .
The agreement provides a turbulent two months for WeWork, in which Neumann oversaw a disastrous attempt to take the regular public. The long-awaited IPO was dropped after investors valued the valuation and criticized the shared workspace of the supplier's business management.
But in a statement, SoftBank CEO Masayoshi Son managed the trifle power.
"It is not uncommon for the world's leading technological disruptors to experience growth challenges that WeWork just faced," Son said.
"The new capital SoftBank provides will restore momentum for the company, and I am committed to delivering profitability and positive free cash flow," Claure said in a statement.