WeWork co-founder and former executive Adam Neumann is in advanced talks to resolve a high-profile legal fight with SoftBank Group Corp., agreeing to a nearly $ 500 million cut in his payment from the company’s new owner. shared office space, a move that would help pave the way for WeWork’s second attempt to make a list public.
Under the terms discussed, SoftBank would spend approximately $ 1.5 billion buying shares of WeWork’s first investors and employees, including nearly $ 500 million to buy shares of Mr. Neumann, in both cases about half of what it originally agreed to, according to people. familiar with the talks.
SoftBank took a majority stake in WeWork after its initial public offering attempt collapsed in 2019 when public investors pledged to buy the shares of the losing company and the conflicts of interest and erratic behavior of the Mr. Neumann. Neumann relinquished pressure as CEO following the stock market debacle.
Negotiations have been rocky at times and are not guaranteed to produce an agreement, but if there is, it could end in the next few days, according to people.
Should there be an agreement, another agreement could be followed, as WeWork is also in talks to combine it with a special-purpose acquisition company, a move that would eventually turn it into a public company.