SoftBank, which is now WeWork's largest investor, also proposes to buy shares worth up to $ 3 billion from existing investors and shareholders. The SoftBank Vision Fund will exchange all its interests in WeWork regional joint ventures throughout Asia, with the exception of the Japanese joint venture, for shares in WeWork.
SoftBank shares fell 2.5% in Tokyo after the deal was announced.
The message did not reveal details of Neumann's payout, but the WeWork founder could get away with nearly $ 1.7 billion. SoftBank's offer to buy Neumann's shares is limited to $ 975 million, and the package includes an additional $ 500 million loan to repay a credit line plus a $ 185 million "consulting fee" for SoftBank, a person familiar with the matter said.
The deal capped a tumultuous two months for WeWork, during which Neumann observed a disastrous attempt to take over the hard-core audience. The long-awaited IPO was delayed after investors evaluated its valuation and criticized the corporate governance of the workspace provider.
But in a statement, SoftBank CEO Masayoshi Son downplayed the debate.
"It is not uncommon for the world's leading technology disruptors to experience the challenges of growth, as one that WeWork has just faced," Son said.
"The new capital that SoftBank provides will bring back the company momentum and I am committed to delivering profitability and positive free cash flow," Claure said in a statement.