If WeWork’s board had not approved the SoftBank bailout deal, the coworking company would have run out of money by the end of next week.
This week, it was announced that SoftBank would provide WeWork with $5 billion in financing and $3 billion in a tender offer for current shareholders. Once the deal is completed, SoftBank will take up an 80% stake in the coworking firm.
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The deal will also appoint SoftBank’s COO Marcelo Claure as its executive chairman. Additionally, former WeWork CEO Adam Neumann will become a “board observer” and receive as much as $1.7 billion for him to step down as chairman and give up his voting rights.
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