Adam Newman’s Golden Parachute is getting smaller.
According to reports, the co-founders of WeWork are discussing an agreement with SoftBank that would reduce its payout from the Japanese investment giant by nearly half.
Newman and WeWork filed separate lawsuits against SoftBank last spring after it dropped plans to buy $ 3 billion in shares from office-sharing giants’ investors.
But the parties are about to strike a deal that SoftBank – now the largest owner of WeWork – will be on the hook for about $ 1.5 million, including about $ 500 million that will go to Neumann. The Wall Street Journal reported Monday.
SoftBank will receive a pile of cash from the company’s initial investors in exchange for 10.5 percent of WeWork’s stock at a rate of $ 19.19 per share, the price at which it initially agreed to pay, a person familiar with the deal Told CNBC.
WeWork declined to comment on the negotiations, which are not guaranteed to produce a final agreement. A Softbank spokesman did not immediately respond to a request for comment on Tuesday.
If the deal goes through, the settlement deal would go from a $ 1.7 billion exit package to about $ 500 million, while Newman was forced to step down as CEO of WeWork in 2019 following an unsuccessful attempt by the company’s initial public offering Was to be received.
SoftBank honored Marcello Claire, who also serves as executive chairman of WeWork in October, said Neiman would no longer receive a $ 185 million consultation fee, which he promised because he “had some of the consulting agreement Had violated parts. “
Amid the stated discussions, WeWork will take another run publicly by merging with a special purpose acquisition company. It is a publicly traded shell company that hollows itself out for another firm that then handles its stock listing.
According to the journal, WeWork is in talks with a SPAC called Box Acquisition Corp. about joining forces, which according to the journal, could be worth about $ 10 billion. The company is believed to have paid less than $ 47 billion in value, which is believed to have hit the IPO earlier.
Before he stepped forward under pressure, reports said Newman promoted a party culture in Wework that included him smoking on a private jet. He was also accused of not doing enough to curb spending on the company that lost money.
With post wires
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