SoftBank reaches deal with WeWork

1 March, 2021 12:00 AM printer

TOKYO: Internet investor SoftBank Group said Saturday it reached a settlement with WeWork co-founder Adam Neumann and other investors in the office sharing giant, amid reports that the deal would give the ex-CEO an extra $50 million.

SoftBank Group did not release details of the agreement that puts to rest a bitter dispute emerging from the Japan-based firm’s 2019 decision to bail out WeWork, once regarded as a soaring unicorn but which quickly spiralled into deep troubles as it lost cash and cancelled its eagerly waited share offering, reports AFP.

Under the deal, the Wall Street Journal reported, SoftBank Group would buy about $1.5 billion of stock from other investors, including nearly $500 million from Neumann, roughly a half of what it originally planned to buy.