SoftBank Group Corp. is taking control of WeWork, part of a rescue financing plan that will see founder Adam Neumann depart from the company’s board, according to people familiar with the matter.
Neumann is expected to sell about $1 billion of stock to the Japanese investment firm as part of the deal, said the people, who asked to remain anonymous because the deal hasn’t been announced. He can also assign two board seats and will get a roughly $185-million consulting fee.and JPMorgan Chase & Co. to keep it from running out of money as soon as next month.
JPMorgan had been putting together a $5-billion debt package for WeWork, which would have been one of the riskiest junk-debt offerings in recent years.SoftBank, WeWork and JPMorgan either declined to comment or couldn’t immediately be reached. Dow Jones earlier reported details of the deal.
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