What happened with SoftBank and WeWork?
Table of Contents
What happened with SoftBank and WeWork?
In November 2019, SoftBank took an $8.2 billion write-down on its WeWork stake, including a $3.5 billion hit to the SoftBank Vision Fund, the company’s $100 billion venture-capital portfolio. (The parent company took the rest of the blow.)
Is anyone suing Adam Neumann?
SoftBank settles WeWork lawsuit, leaving embattled co-founder with windfall. and co-founder Adam Neumann reached a legal settlement with SoftBank Group Corp. that will cement control of the embattled real estate start-up with its largest investor and send the former chief executive on his way with a financial windfall.
How much does Adam Neumann owe?
As part of his exit deal, SoftBank agreed to take over the loan from the original lenders; the amount owed by Neumann grew to $432 million by February 2021, according to the most recent prospectus.
Is Adam Neumann still a billionaire?
Following WeWork’s merger with BowX Acquisition Corp., a SPAC, Neumann is now worth around $2.3 billion, according to the Bloomberg Billionaires Index. While that’s still a far cry from his estimated net worth in 2019 (a whopping $14 billion), Neumann’s net worth had fallen below the $1 billion mark last year.
What happened WeWork founder?
Despite his public battles with SoftBank, Neumann still holds about 11\% of WeWork (he was ousted as CEO in 2019). Though he has given up most of his voting rights, that along with other severance packages means he is still, yes, a billionaire. Neumann played a major role in the WeWork fallout.
Did Adam Neumann get his payout?
WeWork founder Adam Neumann received $445m payout in exit package. In addition to the $245m grant, Neumann received $200m in cash, was able to refinance $432m in debt on favorable terms, and allowed a finance company controlled by the former chief executive to sell $578m in WeWork stock.
Neumann still owns about 11\% of WeWork, worth more than $850 million including the profits interests. He isn’t able to sell those shares for nine months.