WeWork founder Adam Nuemann, Softbank Reach Settlement in Battlefield

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Topline

WeWork founder Adam Nuemann and Japanese company Softbank have reached an agreement to settle their months-long legal dispute, paving the way for the coworking company to try again to go public after its disastrous 2019 IPO attempt.

Key facts

The terms of the contract have not been published, however Bloomberg has reported based on anonymous sources that Softbank will give Neumann about $ 480 million for its WeWork stock, $ 50 million from a previously agreed non – competitive tax and another $ 50 million to cover its legal costs, which more than five years to extend the $ 430 million loan it gave him at the end of 2019,

The Iris Wall Street reported earlier in the week that Softbank was in talks to pay off $ 1.5 billion for Nuemann shares and early employees and other investors.

Neumann Softbank last year declined after SoftBank, which is WeWork’s largest shareholder, withdrew from a $ 3 billion deal to buy its shares and shares of other employees and investors.

In a fierce legal battle, Neumann said Softbank was “secretly taking steps to make the case”, and Softbank said WeWork had not met certain conditions for the move deal.

Key background

Softbank offered WeWork the $ 3 billion lifeline in 2019 after a failed IPO attempt. Investors were involved in the company’s massive losses hidden by creative accounting tricks as well as Neumann’s erroneous leadership, which made his ouster. Once valued at $ 47 billion, the company’s value has dropped to about $ 2.9 billion.

Quote Cruise

“This agreement is a result of all parties coming to the table to do what is better for the future of WeWork,” said Marcelo Claure, who is both executive chair of WeWork and SoftBank COO, in a statement.

What do you look

In the past few weeks, WeWork has been in talks with Bow Capital Management LLC and another unidentified company to go public through SPAC, according to the Iris Wall Street.

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