Adam Neumann, CEO of WeWork.
Eduardo Munoz | Reuters
WeWork co-founder Adam Neumann and SoftBank are nearing a settlement agreement that would entitle the former CEO to a $ 480 million payout for approximately 25% of his shares in the company, a person familiar with the case told CNBC’s Deidre Bosa. That’s half the number of shares SoftBank originally wanted to buy, this person said.
Should a deal be finalized, SoftBank would purchase approximately $ 1.5 billion in stock from early WeWork investors. The deal would represent 10.5% of WeWork’s stock, priced at $ 19.19 per share, the price initially agreed, the person said. Neumann would remain a major shareholder in the company.
SoftBank reached out to Neumann following a report last month that WeWork was in talks to combine with an SPAC affiliated with Bow Capital Management, the source said.
Talks between Softbank and Neumann were first reported by the Wall Street Journal on Monday.