• SoftBank is about to take control of WeWork, as the office-sharing firm battles to stay afloat, according to a Wall Street Journal report.
  • WeWork founder and former CEO Adam Neumann is set to receive almost $1.7 billion from the Japanese investor as part of the deal, which will see him step off the board, the Journal reported. Neumann will reportedly sell about $1 billion in shares to SoftBank, plus receive an additional loan and consulting fee.
  • Business Insider earlier reported that Neumann will also give up his voting shares as part of the bailout.
  • WeWork had also been subject to a competing takeover bid by JPMorgan, but it looks like SoftBank has won out.
  • Read all of Business Insider's WeWork coverage here.

WeWork's main backer SoftBank will reportedly pay cofounder and ex-CEO Adam Neumann almost $1.7 billion as part of a takeover deal that will see him resign from the office-sharing firm's board.

The Wall Street Journal reported on Tuesday morning that SoftBank had won the takeover bid for WeWork, which is battling to stay afloat after Neumann stepped down as CEO and the firm delayed its IPO indefinitely.

WeWork and SoftBank have not commented on the report.

Business Insider earlier reported that WeWork's board would be reviewing competing takeover bids from SoftBank and JPMorgan on Tuesday.

Neumann is, according to the Journal, expected to sell $1 billion worth of stock to SoftBank.

He will also receive a $185 million "consulting fee", as well as $500 million in credit.

The Japanese firm has invested around $10 billion in the company to date.

Neumann resigned as WeWork's CEO in September, with CFO Artie Minson and another exec Sebastien Gunningham taking over as co-CEOs on September 24.

SoftBank's takeover deal values WeWork at $8 billion, the Journal reported, a fraction of the valuation the firm hoped to achieve when it floated. The firm was once worth $47 billion and SoftBank executive Rajeev Misra once boasted that the firm was worth $100 billion.

Neumann will still be able to attend board meetings as a "board observer", the Journal reported, meaning that he can watch proceedings but can't vote on decisions.

This post originally appeared on Business Insider.

Published on: Oct 22, 2019