Adam Neumann the man who initiated and managed WeWork and also the man who caused its failure, manages to come out of this failure as big. Beyond the fact that Softbank, the large investor in the workspace company, “bought it out” for many hundreds of millions of dollars about a year and a half ago, it will pay it close to half a billion dollars as part of a compromise on Softbank’s intention to merge WeWork against the Wall Street tide with Spock.
The company, according to the American media, has agreed on a merger with the Spac bow capital company, and will soon start raising the pipe that will inject WeWork a sum of $ 350 million.
Softbank will increase its stake in the company following a settlement with Adam Neumann by 10.5% and will reach 90% before the dilution following the merger with Spock, and Neumann will still have a percentage in the company that will be worth hundreds of millions of additional dollars.
The compromise comes against the backdrop of a Softbank bailout about a year and a half ago. So Softbank poured money into the workspace company in exchange for shares and dilution of shareholders. The goal was to save the company and it succeeded, but the shareholders and Neumann in the lead claim that the dilution value was low and demand compensation. Neumann took advantage of Softbank’s need to reach a quick compromise otherwise the company would not be able to raise on Wall Street and he is out of the WeWork billionaire adventure.
Comments on the article(0):
Your response has been received and will be published subject to system policies.
Thanks.
For a new response
Your response was not sent due to a communication problem, please try again.
Return to comment