Dumped WeWork co-founders could earn $ 500 million from Spac deals

Adam Neumann was able to obtain approximately $ 500 million in cash from WeWork’s holdings and acquire shares in a publicly traded company. It’s been less than 18 months since the first public offering failed at the expense of his CEO job.

SoftBank, with WeWork co-founders and other shareholders, Bitter legal A battle that originated in a Japanese group Rescue in October 2019 Negotiation-savvy people needed to avoid bankruptcy after the IPO collapse of the office group

Eliminating the proceedings filed by Neumann and the Group’s Independent Directors’ Special Committee paved the way for WeWork to be acquired by a special purpose acquisition company, giving a public list of attempts and failures in 2019. Let’s go.

People familiar with the matter said BowX Acquisition, a blank check vehicle that raised $ 420 million in an IPO in August, has approached WeWork’s largest shareholder, SoftBank, for a deal that could value WeWork for about $ 10 billion. It was.

$ 47 billion

Price tag on WeWork in the last private funding round before Softbank failed its IPO

Negotiations between the two groups are ongoing and negotiations may still collapse, but an agreement may be reached in the coming weeks. Resolving legal disputes with Neumann and others has been seen as important to complete the merger with BowX, given that the new public company will have to attract investors to its shares. I did.

The valuation in dispute will work Under the $ 47 billion price tag Softbank set up the company in the last private funding round before the IPO failed. This was what Neumann and his Wall Street bankers once wanted to be on par with or above that level.

But that would represent Neumann’s unexpected rebound of fate, a support for a business model that looked dangerous as a Covid-19 pandemic. Empty office And another indicator of how Spak boom Transformed the capital markets.

SoftBank is said to have submitted to Neumann and a special committee within the past two weeks a proposal to resolve the $ 3 billion tender offer dispute as part of the October 2019 bailout.Japanese group Withdraw from agreement Buy shares from Neumann and other investors as the terms of the transaction are not met.

On the other side For confrontation In court over next week’s tender offer, after a previous trial gave the Special Committee and Neumann a position to file a proceeding against Softbank.

The pending settlement will allow SoftBank to pay Neumann and other investors $ 1.5 billion (half of the disputed amount). Benchmark capital.. Neumann will receive about $ 480 million in 25% of his holdings, not twice the 50% he may have bid on. He also holds three-quarters of his current holdings at public companies.

WeWork cuts staff, Finished Over 100 open and planned locations since the fate changed dramatically last year. Under the leadership of Chief Executive Officer Sandeep Mathrani, the company continues, but has dramatically reduced costs. Lose money..

Negotiations are ongoing and the exact amount Neumann and others receive may change.

BowX is backed by Bow Capital, a venture capital fund founded with the support of the University of California, led by two former Tibco Software executives, Vivek Ranadivé and Murray Rode. Last year’s list document stated that it was intended to scout telecommunications, media and tech companies.

Lana Dibe also owns the Sacramento Kings basketball team.

Former Wall Street Journal report About settlement negotiations.

Dumped WeWork co-founders could earn $ 500 million from Spac deals

Source link Dumped WeWork co-founders could earn $ 500 million from Spac deals

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