Here Are The Billions Of Loans Exposed To A Potential WeWork Bankruptcy
By Tyler Durden | 30 September 2019
ZERO HEDGE — With the WeWork IPO now dead and buried, and as attention shifts to the company which for years was world consciousness elevating Adam Neumann’s personal piggybank (he cashed out to the tune of $740 million, while stranding his thousands of employees with worthless stock) many are noticing what we highlighted last week, namely that WeWork now has just a few months of cash left.
As we noted recently, the most immediate task facing WeWork is that once the IPO was called off, it unraveled a $6 billion financing package. It is also the gargantuan challenge facing the company’s two new co-CEOs brought in to replace Neumann – Sebastian Gunningham and Artie Minson – who have to find a way forward for a company that was until just a few weeks ago one of the world’s most valuable private startups with a valuation of $47 billion … but has not only never made a penny in profit but saw its losses grow the more its revenue increased.
Tech and finance experts are shocked by SoftBank’s ‘stone-cold crazy’ $1.7 billion golden parachute for ousted WeWork CEO Adam Neumann
- The news that SoftBank would give Adam Neumann close to $1.7 billion to leave WeWork’s board and give up his voting power sent reverberations through the tech and finance worlds on Tuesday morning.
- Experts largely agreed that SoftBank made the right move by separating Neumann from WeWork, but many were bowled over by the astronomical value of Neumann’s golden parachute.
- Legal experts said that while a shareholder lawsuit was unlikely, shareholders had good reason to be upset by the deal.
- Meanwhile, outside experts said the episode could tarnish SoftBank’s reputation.
By Aaron Holmes | 22 October 2019
BUSINESS INSIDER — The Japanese investor SoftBank will give the former WeWork CEO Adam Neumann close to $1.7 billion to leave the company’s board and give up his voting power, The Wall Street Journal reported on Tuesday morning, sending reverberations through the worlds of tech and finance.
While the experts largely agreed that SoftBank made the right move by taking control of WeWork away from Neumann, they were astounded by the size of Neumann’s golden parachute.
“It’s stone-cold crazy,” said Eric Schiffer, CEO of the Patriarch Organization, a technology and media private-equity firm. “I think SoftBank blinked, and Neumann walks away with one of the biggest hauls in modern history when he should have gotten very little.”
The embattled office-sharing startup was fighting to stay afloat after its initial public offering failed and Neumann stepped down as CEO last month. WeWork’s board this week was also weighing a buyout from JPMorgan, Business Insider reported. […]
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