SoftBank to spend $10B to take over WeWork

SoftBank to spend $10B to take over WeWork
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SoftBank plans to spend spend more than $10 billion to take over WeWork and pay off former CEO Adam Neumann.

SoftBank will have paid a total of $19 billion for control of WeWork, even though the office-sharing company is currently valued at $8 billion, people familiar with the matter told Reuters on Tuesday. 

The offer would provide SoftBank the opportunity to own 60 to 80 percent of the troubled startup, but sources told Reuters the company will not consolidate WeWork on its books. SoftBank and its subsidiary Vision Fund already own a third of the company.

SoftBank COO Marcelo Claure reportedly plans to replace Neumann, and WeWork’s former chief financial officer and former vice chairman will take over as co-chief executives.

Neumann has agreed to take $685 million to step down from the board of The We Company, which owns WeWork. He has remained chairman of the board after he stepped down from his CEO position.

WeWork has had a tumultuous past few months with its all-male leadership team receiving backlash and Neumann stepping down as CEO amid questions about his leadership and reports that he had too much control over the company.

WeWork has since withdrawn a previously planned initial public offering.

The Hill reached out to SoftBank and WeWork for comment.