Aya Lin · · 1 min readIn brief: WeWork CEO cashed out over $700m ahead of IPO, sources say
- WeWork co-founder and CEO Adam Neumann cashed out over US$700 million from the company through stock sales and debt ahead of its initial public offering, The Wall Street Journal reported, citing people familiar with the matter.
- The size and timing of the payout are unusual, as founders in most cases wait until a company holds its public debut before liquidating holdings.
- Neumann, who remains WeWork’s single largest shareholder, had also previously sold some of his stake in the company and borrowed against some of his holdings, the people said.
- Startup investors have generally frowned upon founders cashing out earlier than an IPO, but people close to Neumann say his borrowings against some of his shares indicate that he is bullish on WeWork in the long term.
Editing by Charmaine de Lazo
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