Oct 21, 2019

Scoop: Adam Neumann will determine WeWork's fate

Photo: Michael Kovac/Getty Images for WeWork

Japanese investment firm SoftBank will pay former WeWork CEO and current non-executive chairman Adam Neumann around $200 million to leave the board of directors, give up his voting shares and support SoftBank's takeover, according to multiple sources familiar with the situation.

Why it matters: It's a dramatic — and legally dubious — development in a saga that has seen the embattled company plunge from a $47 billion valuation to below $8 billion. SoftBank's board will vote on Tuesday, but that's irrelevant, since Neumann's 10 votes per share are the only ones that matter. It's unclear if Neumann's successors Sebastian Gunningham and Artie Minson will stay on as co-CEOs.

Details: The deal from SoftBank will come from SoftBank Corp., not the SoftBank Vision Fund. It will include a $3 billion tender offer to employees at $20 a share, plus additional equity.

  • It's unclear what the plan for layoffs will be. If and when that is announced, it will be up to SoftBank to decide.
  • A source says that SoftBank plans to install Marcelo Claure as chairman, succeeding Neumann.

Go deeper: WeWork is running out of money

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How SoftBank plans to save WeWork

Illustration: Aïda Amer/Axios

WeWork's board this morning will vote on whether to accept a rescue package from SoftBank or one arranged by JPMorgan.

The big picture: SoftBank's package includes a massive bribe... errr, I mean golden parachute... errr, I mean "consulting contract" for Neumann.

Go deeperArrowOct 22, 2019

WeWork accepts SoftBank's rescue package

Illustration: Aïda Amer/Axios

WeWork said in a statement Wednesday it has accepted a multibillion-dollar rescue package from SoftBank that gives the Japanese firm an 80% stake in the company.

Why it matters: Per Axios' Dan Primack, who first reported that the deal was about to happen, it'a dramatic development in a "saga that has seen the embattled company plunge from a $47 billion valuation to below $8 billion."

Go deeperArrowOct 23, 2019

Report: SoftBank to take control of WeWork

Illustration: Sarah Grillo/Axios

Japanese investment firm SoftBank is set to take control of WeWork in a deal that slashes the co-working company's valuation from $48 billion to around $8 billion, according to CNBC. WeWork is declining comment, and there is subsequent reporting that the company is still deciding between SoftBank's offer and a debt package led by J.P. Morgan.

Why it matters: SoftBank helped break WeWork. Now it may own it.

Go deeperArrowOct 21, 2019