New York (AFP)

The fall is violent for WeWork: celebrated there is still little like one of the stars of the economy of sharing, the giant of the "co-working" had to be resolved to be saved by its Japanese shareholder SoftBank, with the price of the final departure from its iconic CEO.

SoftBank Group announced Wednesday an injection of additional $ 5 billion into WeWork and a takeover bid on securities it does not yet own, for a maximum of $ 3 billion.

SoftBank, which currently holds a 29% stake in WeWork, will take control of it with a stake of about 80%. According to a source familiar with the matter, the board of The We company, the parent company of WeWork, has agreed against this offer.

The plan of SoftBank, owned by the Japanese billionaire Masayoshi Son, involves the final departure of former CEO Adam Neumann, whose escapades eventually bored the business community and became a foil for potential investors.

The extravagant boss will retain only a small stake in the capital and will abandon his cap as chairman of the board, it was said.

However, he does not leave empty-handed: part of the $ 5 billion, or $ 1.7 billion, will be donated.

Without this financial contribution, WeWork, relegated to the category of speculative investments by rating agencies, would have run out of cash by the end of November, analysts say.

WeWork, which did not wish to comment, was to formalize these changes after a board of directors Tuesday during which the company had to decide between two offers of rescue, including one from the bank JPMorgan Chase.

- The fall of a star -

The rescue of WeWork illustrates the downfall of a company that has seen things too quickly, supported by investors willing to spend a lot of things to "stars" of the new economy.

But, as with Uber and Lyft, questions have increased in recent months about WeWork's ability to be profitable and to cope with the global economic downturn, with real estate often being one of the first affected sectors.

WeWork, whose ultra-modern offices are often located in the heart of megacities like London or New York, was forced to give up in September what was to be one of the most anticipated IPOs of the year.

The entry on Wall Street could have enabled him to raise at least $ 3 billion and to benefit in addition to a line of credit of $ 6 billion from major banks.

By renouncing it, the company must also slash the expenses, especially those, luxurious, of Mr. Neumann.

Renowned for spending a lot of money to fuel its rapid expansion, the group has still incurred in 2018 a loss of $ 2 billion for a turnover of 1.82 billion.

WeWork should also launch a major restructuring including the sale of non-strategic assets and job cuts, according to sources close to the case.

Over the years, and with the interests of his former boss, the group had invested in WeLive co-location activity, education with WeGrow, and the social network Meetup.

Adam Neumann reinvented the concept of shared offices and gave WeWork a high-tech, hipster-like image that earned him tremendous success in just a few years.

But his management style, his controversial accounting methods and apparent conflicts of interest have begun to dampen investor enthusiasm.

WeWork now manages more than 500 sites in 30 countries and employs 12,500 people.

© 2019 AFP