Tokyo (AFP)
Japanese investment firm SoftBank said on Saturday it had reached a deal with Adam Neumann and other shareholders in U.S. shared office giant WeWork, amid press reports that the co-founder could get another $ 50 million provided that.
SoftBank did not provide any details about this deal that ends the feud stemming from its WeWork bailout in 2019, initially seen as a great story but quickly escalated into a cascade of problems with WeWork burning cash and canceling a capital increase.
According to the Wall Street Journal, SoftBank Group would buy $ 1.5 billion in shares from other investors, about a third of which from Adam Neumann, roughly half of what the investment firm initially envisioned. Japanese.
But press reports say the deal would give the controversial co-founder an unexpected $ 50 million extension, along with another $ 50 million, to cover his legal fees, while a Softbank loan of $ 430 million. of dollars would be extended for five years.
Adamn Neumann and other WeWork shareholders had sued SoftBank, accusing it of betraying its obligations by forgoing the $ 3 billion bailout.
"This agreement results from the desire of all parties to sit at the same table," to find the best solution for the future of WeWork, said Marcelo Claure, executive chairman of WeWork and general manager of SoftBank.
Created in 2010, WeWork was built on a shared office model, which combined flexibility and user-friendliness.
With the legal conflict "behind us, we are now fully focused on our mission to rethink the workspace and meet the growing demand for flexible spaces across the world," said Marcelo Claure.
WeWork's success had resulted in a valuation of $ 47 billion in January 2020, with SoftBank founder Masayoshi Son publicly saluting Adam Neumann's strategic vision, but then scaled back.
The latter was then pushed out in exchange for generous compensation, with WeWork losing money and having to forgo a fundraiser.
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