The mother of all golden parachutes – SoftBank pays Adam Neumann a whopping $1.7 billion to exit WeWork


After getting people across the globe to embrace the co-working culture, WeWork has shone out as one of the most successful start-ups of the decade. However, the company’s trajectory and especially that of its co-founder Adam Neuamann is no less than a dramatic tele-series. Leading with a brash attitude, causing the company over $900 million in losses this year, eloping with marijuana on a flight and wanting to fire a chunk of its workforce has caused Neumann a price that he’d have to bear after all.

After stepping down as CEO this September, the Israeli entrepreneur has now been asked to exit the company altogether as part of the start-ups rescue deal with SoftBank. Per reports, the Japanese company will be buying WeWork for $8 billion in addition to purchasing $1 billion worth of stock from Neumann. The transaction will also extend $500 million in credit to the maverick and pay him $185 million in consulting fees – all for having him to relinquish control over company (even though he will maintain observer status).

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However, despite Neuman’s exit, the future of WeWork continues to appear bleak for its employees as the company reportedly prepares for massive layoffs in the time to come. Well, despite celebrating laurels of a collaborative, open and expectedly fair work culture in the world, the saga of WeWork is a stark example of how income disparities still need some nipping in the bud. Maybe a lesson for new-age start-ups to imbibe?

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[Via:Forbes]