WeWork's Adam Neumann to Get Extra $50 Million Payout in SoftBank Settlement
By Maureen Farrell and Eliot Brown
WeWork co-founder and former Chief Executive Adam Neumann is set
to reap an extra $50 million windfall and other benefits as part of
an agreement that would settle a bitter dispute he and other early
investors in the shared-office-space provider have waged with
SoftBank Group Corp., according to people familiar with the
As The Wall Street Journal reported earlier this week, the
parties are closing in on a deal in which SoftBank, WeWork's
majority shareholder, would buy about $1.5 billion of stock from
other investors, including nearly $500 million from Mr. Neumann.
That is about half as much as it previously planned to buy.
But part of the deal not previously reported sets Mr. Neumann
apart from other shareholders. It calls for SoftBank to give the
41-year-old the $50 million special payout and extend by five years
a $430 million loan it made to him in late 2019, the people said.
SoftBank is also slated to pay $50 million for Mr. Neumann's legal
fees. It isn't clear how much it is paying for the other
shareholders' legal fees.
The settlement between SoftBank, Mr. Neumann and the other
shareholders isn't final and the terms could still change, the
people cautioned. Should the parties reach agreement, potentially
in the next few days, it would avert an early-March trial.
(END) Dow Jones Newswires
February 24, 2021 21:56 ET (02:56 GMT)
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