WeWork co-founder and former Chief Govt Adam Neumann is in superior talks to settle a high-profile authorized battle with SoftBank Group Corp. by agreeing to a virtually $500 million lower in his payout from the shared-office-space firm’s new proprietor, a transfer that might assist clear the best way for WeWork’s second try at a public itemizing.
In keeping with phrases being mentioned, SoftBank
would spend roughly $1.5 billion to purchase the shares of early WeWork buyers and staff, together with almost $500 million to buy shares from Neumann — in each instances about half of what it initially agreed to, in response to folks accustomed to the talks.
SoftBank took a majority stake in WeWork after its tried preliminary public providing collapsed in 2019 when public buyers balked at shopping for the money-losing firm’s shares and at Neumann’s conflicts of curiosity and erratic conduct. Neumann stepped down beneath stress as CEO within the wake of the IPO debacle.
The negotiations have been rocky at occasions and there’s no assure they’ll produce an settlement, but when there’s one, it might be finalized within the coming days, the folks mentioned.
Ought to there be a settlement, it might be adopted by one other deal as WeWork can be in talks to mix with a special-purpose acquisition firm, a transfer that might lastly convert it right into a public firm.
Additionally in style on WSJ.com: