Adam Neumann is reportedly exiting WeWork with a $1.7 billion parachute
WeWork co-founder Adam Neumann looks set to exit the cash-strapped company with almost $2 billion.
SoftBank Group Corp. has earned approval to take control of WeWork in a deal that will see Neumann receive almost $1.7 billion, The Wall Street Journal reported Tuesday. The Japanese company will buy almost $1 billion worth of stock from Neumann as well as provide him with about $500 million in credit and a $185 million consulting fee as he steps down from the board, according to the report. He'll reportedly still have a stake in the company and be a board observer.
Bloomberg's Max Abelson points out the $185 million consulting fee alone is more than just about every CEO in the United States made last year.
Subscribe to The Week
Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.
Sign up for The Week's Free Newsletters
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
Neumann stepped down as CEO of the workspace company last month amid mounting board pressure following an initial public offering delay. Shortly after, WeWork's IPO was withdrawn and reports emerged that the company was set to run out of money before the end of the year.
Now, SoftBank is taking control and valuing WeWork at $8 billion, which the Journal notes is a massive drop from the $47 billion it was valued at in January. SoftBank previously owned about a third of the We Company.
"SoftBank pumped more than $10b in WeWork because it believed in Adam Neumann," CNBC reporter Alex Sherman observed Tuesday. "Now it's paying him $1 billion for his equity and a $185 million consulting fee to go away. Art of the deal."
After the Journal reported Monday that WeWork had delayed layoffs because it couldn't afford to pay severance, The Atlantic's Derek Thompson also observed that Neumann will "have cashed out nearly $2 billion of a company that's literally too poor to fire thousands of employees."
Create an account with the same email registered to your subscription to unlock access.
Sign up for Today's Best Articles in your inbox
A free daily email with the biggest news stories of the day – and the best features from TheWeek.com
Brendan worked as a culture writer at The Week from 2018 to 2023, covering the entertainment industry, including film reviews, television recaps, awards season, the box office, major movie franchises and Hollywood gossip. He has written about film and television for outlets including Bloody Disgusting, Showbiz Cheat Sheet, Heavy and The Celebrity Cafe.
-
'Good riddance to the televised presidential debate'
Instant Opinion Opinion, comment and editorials of the day
By Harold Maass, The Week US Published
-
Caitlin Clark the No. 1 pick in bullish WNBA Draft
Speed Read As expected, she went to the Indiana Fever
By Peter Weber, The Week US Published
-
Today's political cartoons - April 16, 2024
Cartoons Tuesday's cartoons - sleepyhead, little people, and more
By The Week US Published
-
Empty-nest boomers aren't selling their big homes
Speed Read Most Americans 60 and older do not intend to move, according to a recent survey
By Peter Weber, The Week US Published
-
Brazil accuses Musk of 'disinformation campaign'
Speed Read A Brazilian Supreme Court judge has opened an inquiry into Elon Musk and X
By Rafi Schwartz, The Week US Published
-
Disney board fends off Peltz infiltration bid
Speed Read Disney CEO Bob Iger has defeated activist investor Nelson Peltz in a contentious proxy battle
By Rafi Schwartz, The Week US Published
-
Disney and DeSantis reach detente
Speed Read The Florida governor and Disney settle a yearslong litigation over control of the tourism district
By Peter Weber, The Week US Published
-
Visa and Mastercard agree to lower swipe fees
Speed Read The companies will cap the fees they charge businesses when customers use their credit cards
By Peter Weber, The Week US Published
-
Reddit IPO values social media site at $6.4 billion
Speed Read The company makes its public debut on the New York Stock Exchange
By Peter Weber, The Week US Published
-
Housing costs: the root of US economic malaise?
speed read Many voters are troubled by the housing affordability crisis
By Peter Weber, The Week US Published
-
Feds cap credit card late fees at $8
speed read The Consumer Financial Protection Bureau finalized a rule to save households an estimated $10 billion a year
By Peter Weber, The Week US Published