The deal would mean Neumann sells about a quarter of his position in WeWork and remains a major shareholder in the company, the person said, while noting the agreement isn’t finalized and could still change. The agreement could also pave the way for a second attempt at a WeWork public listing, the person added. A spokesman for Neumann and a spokeswoman for SoftBank declined to comment. The Wall Street Journal reported on the talks earlier.
Read more: WeWork’s New CEO Is Eyeing an IPO Again – After He Turns Profit
The settlement would bring an end to a high-profile legal dispute between Neumann, WeWork’s former chief executive officer, and SoftBank, which for many years was his most exuberant backer. In 2019, after WeWork’s initial public offering failed, he stepped down and the Japanese conglomerate agreed to buy $3 billion in stock from Neumann and other shareholders as part of a bailout package. The generous exit package for Neumann enraged some WeWork employees when thousands of jobs were cut at the co-working company around the same time.
As the date for the stock sale approached in early 2020 and WeWork saw its business battered by the Covid-19 pandemic, SoftBank pulled out of the deal, citing regulatory concerns and government investigations into the company. Neumann sued, alleging that SoftBank and its Vision Fund relied on legally faulty pretexts to renege on the agreement. An online trial in Delaware Chancery Court is still scheduled to start March 4.
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