WeWork co-founder and former Chief Executive Adam Neumann is in advanced discussions over a high-profile legal battle with SoftBank Group Corp. by agreeing to a nearly $ 500 million rebate from the new owner of the shared office space, a move that would pave the way for WeWork’s second attempt at public listing.
Under the terms being discussed, SoftBank would spend approximately $ 1.5 billion to buy the shares of early WeWork investors and employees, including nearly $ 500 million to buy shares from Mr. Neumann – roughly half of that in each case. what it was originally agreed upon, according to people familiar with the talks.
SoftBank took a majority stake in WeWork after the IPO attempt failed in 2019 when public investors refused to buy the cash-losing company’s stock and due to Mr. Neumann’s conflicts of interest and erratic behavior. Mr. Neumann stepped down as CEO under pressure in the aftermath of the IPO debacle.
The negotiations have been rocky at times and there is no guarantee they will lead to an agreement, but if there is one, it could be finalized in the next few days, the people said.
Should there be a settlement, it could be followed by another deal as WeWork is also in talks to combine with a dedicated takeover company, a move that would eventually turn it into a publicly traded company.