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Doris Yu · · 1 min readSources: WeWork co-founder gains windfall as SoftBank settles lawsuit
“WeWork and co-founder Adam Neumann reached a legal settlement with SoftBank Group that will cement control of the embattled real estate startup with its largest investor and send the former chief executive officer on his way with a financial windfall,” reported Bloomberg.
Details:
- Neumann will sell about US$480 million in stock to SoftBank as well as receive US$50 million for legal fees and another US$50 million as part of a noncompete fee from the Japanese conglomerate, according to sources.
- He will also get a five-year extension for the loans worth US$430 million that he owes SoftBank, the sources added.
Context:
- The deal puts an end to a trial scheduled on March 4 relating to a legal fight over a stock transaction between Neumann and SoftBank.
- The US-based startup will potentially seek an initial public offering by merging with a special purpose acquisition company.
Editing by Collin Furtado
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