WeWork’s Adam Neumann Close To Settlement With SoftBank

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WeWork co-founder and former CEO Adam Neumann is in advanced talks to resolve a high-profile legal dispute with SoftBank Group Corp. by accepting a nearly $ 500 million cut in his pay from the new owner of the retail space company. shared offices, a move that would help clear the way for WeWork’s second attempt to go public. Under the terms being discussed, SoftBank 9984, + 1.74% would spend approximately $ 1.5 billion to buy the shares of early investors and WeWork employees, including almost $ 500 million to buy Neumann shares, in both cases about half than you originally agreed. according to people familiar with the talks.

SoftBank acquired a majority stake in WeWork after its initial public offering attempt collapsed in 2019 when public investors refused to buy shares in the money-losing company and Neumann’s conflicts of interest and erratic behavior. Neumann resigned under pressure as CEO in the wake of the IPO debacle. The negotiations have been difficult at times and there is no guarantee that they will produce a deal, but if there is, it could be finalized in the next few days, the people said. Should there be a deal, it could be followed by another deal, as WeWork is also in talks to merge with a special-purpose acquisition company, a move that would ultimately make it a public company. An expanded version of this report appears on WSJ.com. Also popular on WSJ.com: Dominion sues MyPillow, CEO Mike Lindell over election claims. Consumer demand recovers. Factories can’t keep up.