WeWork co-founder and former chief executive Adam Neumann is in advanced negotiations to resolve a high-profile legal dispute with SoftBank Group Corp. agreeing to a cut of almost $ 500 million in its payment from the new owner of the shared office company, a move that would help pave the way for WeWork’s second attempt at a public listing.
According to the terms being discussed, SoftBank would spend about $ 1.5 billion to buy the shares of WeWork’s first investors and employees, including almost $ 500 million to buy Mr. Neumann’s shares – in both cases, about half of what originally agreed, according to people familiar with the lectures.
SoftBank took a majority stake in WeWork after its initial public offering attempt failed in 2019, when public investors refused to buy the company’s shares at a loss and Neumann’s conflicts of interest and erratic behavior. Neumann stepped down under pressure as CEO after the IPO disaster.
Negotiations have been difficult at times and there is no guarantee that they will produce an agreement, but if it does, it could be finalized in the next few days, people said.
If there is an agreement, it could be followed by another deal, as WeWork is also in negotiations to combine with a special purpose acquisition company, a move that would ultimately convert it into a public company.