The SoftBank executives are now in search of a way that will help them save a bit from the $3 billion stock purchase offer they made to WeWork as an initiative from their rescue package. As of now, this office-sharing giant is making wide-scale cost-cutting to its existing staff. The discussions initiated by SoftBank actually centers around trimming down the $3 billion offer for the WeWork shares that are currently owned by the employees, founders, as well as investors.
This move is actually being thought of in order to limit any amount being paid to Adam Neumann, the co-founder of the company. This information was acquired by an internal source that requested anonymity, given the intricacy of the matter. As of now, it isn’t clear how SoftBank would renegade on the agreement established with the WeWork investors, & specifically with Neumann. Any move by the company to re-draw these terms might result in the initiation of a fierce legal battle. As per the deal, Neumann can sell around $970 Million WeWork stock under his possession to the SoftBank.
As per the recent discussions held by SoftBank, some of the executives mentioned that the payout is made to Neumann for the shares is actually very generous. It is a classic case, or one might say the best example for Buyer’s Remorse. The employees at WeWork have been expressing outrage given the favorable deal acquired by Neumann when the business has been dealing with a lot of issues in recent. Representatives for SoftBank, Neumann, or WeWork declined to provide any comment for the same.
Just last month, WeWork’s parent firm We Co. successfully managed to secure a rescue package worth $9.5 Billion from SoftBank. According to the agreement, around 80 percent of the company shares shall be handed over to this Japanese conglomerate. This deal includes around $5 Billion worth new financing along with with acceleration of $1.5 Billion worth existing commitment & another added tender offer amounting to $3 Billion.
As a deal struck with this rescue package, Neumann resigned from his position at the firm’s board, which was replaced successfully by an executive from the SoftBank, Marcelo Claure, who is also the newly appointed SoftBank chairman. The massive size of payout made to Neumann, which included millions in terms of consulting fees, is now facing negative emotions from the employees at WeWork, who have been dreaded with job cuts in a rampant fashion.