SoftBank և WeWork co-founder Adam Neumann agrees to divorce

SoftBank has clarified the full cost of its bitter divorce from WeWork co-founder Adam Neumann, detailing the hundreds of millions of dollars.

Neumann received $ 450 million in cash, rewards, and payments in a settlement that has been hotly debated as he was forced to leave the partner company as CEO in 2019 after a failed attempt. Preliminary public offer.

WeWork targeting the second run of the IPO, this time a merger with an empty company, the agreement is an attempt to break the past. SoftBank considers the high price a reasonable price to pay “to reverse the Neumann era,” said a person familiar with the negotiations.

SoftBank signed a $ 1.6 billion exit package with Neumann in 2019, but in April 2020 withdrew from a bid for WeWork shares that would have raised nearly $ 1 billion. In response, Neumann և two independent directors sued SoftBank, but the two sides settled the dispute this February.

The final estimate, details of which appeared in regulatory documents first published earlier this month by the Wall Street Journal, includes a cash payment of SoftBank և its subsidiaries of more than $ 105 million, nearly half of which is expected to cover Neumann’s lawsuit. Fees: ,

The documents, which were submitted to the Securities and Exchange Commission before the company merged with the special purpose firm BowX Acquisition, also detail a deal that could put Neyman’s so-called “profit interests” at about $ 250 million.

SoftBank reduced the strike price for Neumann’s interest rate points, which are similar to stock options, allowing it to make a profit if WeWork successfully lists և BowX shares selling above $ 10.

The calculation also confirms that SoftBank paid Neumann $ 92.5 million under the 2019 consulting agreement. We Holdings, which was controlled by Neumann as an investment vehicle, also sold $ 578 million worth of WeWork shares to SoftWank.

The Japanese affiliate group, led by billionaire CEO Masayoshi Son, has done more than any other investor to boost WeWork. Boosted by more than $ 10 billion in investment, WeWork jumped to $ 47 billion two years before its listing attempt, making it one of the most highly rated startups in the world.

However, SoftBank’s relationship with Neumann was strained by the eccentricity of WeWork’s co-founding management style.

The company ‘s estimate fell to $ 8 billion in the months following the first attempt at IPO, before SoftBank launched a bailout package. WeWork continues to suffer great losses. The Financial Times found out last week that the company lost $ 2.1 billion in the first three months of this year.

SoftBank, WeWork և Neumann spokesman declined to comment.

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