Update:
SoftBank has pulled out of its planned merger with WeWork citing that their offer to buy up to $3 billion in stock in the co-working giant had been withdrawn after “several conditions” of the deal had not been met.
Insiders also said that the bank was put off the deal by “significant pending criminal and civil investigations which have been made since October 2019″ when SoftBank announced its intentions to take control of WeWork.
Original Story:
As multiple former WeWork employees scramble to make ends meet after getting laid off at the end of March, a new deal is in the works that could make the company’s disgraced cofounder Adam Neumann a whole lot richer.
According to reports, SoftBank Group Corp., the biggest investor of WeWork parent We Co., is planning to buy $3 billion in stock as part of a rescue package of the start-up on April 1. The deal could allow Neumann to unload nearly $1 billion in stock, and those close to the situation are not happy.
“Insiders are stunned by his brazenness,” a source tells Us Weekly. “People are losing jobs while Adam’s set to make an outrageous sum of money.”
The news comes after the start-up reportedly laid off 250 people who worked in the development department. The decision, however, was not made because of the global coronavirus outbreak. WeWork has been trying to reduce its expenses after its failed initial public offering last year. In November, the shared-workspace company let go of 2,400 employees.
This isn’t the first time the businessman, 41, has come under fire either. The Wall Street Journal reported in September 2019 that after 7 percent of WeWork’s staff was fired, the Israel native told his employees during a meeting at the company’s New York City headquarters that the layoffs were necessary to cut costs. But moments later, those in attendance were served tequila shots, drinks and a special performance by Darryl McDaniels of Run-DMC.
The company also faced a lawsuit in 2018 from a former employee who alleged she was fired after reporting sexual harassment, drug use and other inappropriate behaviors in the workplace. In her statement, the woman claimed that Neumann “plied [her] with tequila shots during her interview with the company.” In February, the firm reached a $2 million settlement in cash.
