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SoftBank finally settles with WeWork co-founderINTL

SoftBank finally settles with WeWork co-founder

The SoftBank-WeWork soap opera is finally nearing its season finale.

For those who need a recap: WeWork was meant to go public in 2019 but plans crumbled as former CEO Adam Neumann stepped down after facing intense public scrutiny regarding his leadership style and use of company funds.

SoftBank (9984) then agreed to buy $3b worth of shares from early WeWork investors as part of a rescue plan – including almost $1b worth of shares from Neumann. But, the company walked away last minute, so Neumann hit them with a lawsuit (hope you’re keeping up with all the drama!)

Now, for the final episode, a rumored settlement between SoftBank and Neumann could include a $500m cut in Neumann’s planned payout – which may sound harsh, but it would still give Neumann back his billionaire status (Forbes lists his current net worth at $750m).

why it matters
If and when SoftBank and Neumann finally make up, this will clear the way for WeWork to be bough by the blank-check company BowX Acquisition and potentially try for a second public listing later in the year. The deal could value WeWork at around $10b, which wouldn’t be such a bad comeback for the troubled startup.