WeWork Receives $1.5B SoftBank Bailout in a Rush
WeWork Parent WeCompany, received $1.5 billion from its major investor and shareholder Softbank Group in an accelerated payment.
NEW YORK CITY – WeWork Parent, The We Co., received $1.5 billion from its major investor and shareholder Softbank Group Corp., in an accelerated payment from its $5 billion financing package allotted for the cash-strapped co-working company, which its board approved. The payment accompanies several changes to its board of directors.
Upon receiving the accelerated $1.5 billion payment commitment – now approved by WeWork’s shareholders at $11.60 per share – the board of WeWork has been reconstituted to include 10 members. SoftBank designated Ron Fisher, Marcelo Claure, Steven Langman, with a remaining two open spots. Benchmark Capital and Hony Capital designated Bruce Dunlevie and John Zhao. Unaffiliated WeWork directors Jeff Sine and Mark Schwartz will join the board, in addition to Lew Frankfort, one director from the Special Committee of the Board.
Other governance changes include Marcelo Claure appointment to the executive chairman of the Board. Adam Neumann has become a Board observer, and the Board has received voting control over his shares.