WeWork co-founder and former chief executive, Adam Neumann, is in the news again regarding the firm he helped start. This time around it has nothing to do with sexual harassment, or some of the other controversies he has courted in the past, but rather a reported lawsuit involving one of WeWork’s largest investors – SoftBank.
According to The Guardian, this stems from a collapsed deal by SoftBank to purchase $3 billion in WeWork shares, the majority of which would have gone to shareholders.
In fact the publication adds that Neumann stood to earn a cool $970 million if the deal went through, but SoftBank cited several red flags concerning the firm and its Asian operations as to why it could not go through with things.
It’s important to note though, the failed $3 billion tender does not impact SoftBank’s five year plan for WeWork, which the company outlined in a press release earlier this week.
“The termination of the tender offer will have no impact on WeWork’s operations, customers, five-year business and strategic plan, or the vast majority of WeWork’s current employees,” SoftBank explained.
“SoftBank remains fully committed to the success of WeWork and has taken significant steps to strengthen the company since October, including newly committed capital, the development of a new strategic plan for WeWork and the hiring of a new, world-class management team,” added SVP of the firm, Rob Townsend.
With WeWork having to streamline most of its other investments, as well as potentially laying off thousands of employees in order to be a financially viable firm, Neumann’s reported threat of a lawsuit will not go down well for many.
For now Neumann has not made an official statement on the matter, but even if such an announcement comes to pass, it appears as if SoftBank will stand firm on its decision.[Image – Photo by Uygar Kilic on Unsplash]