The New York Times reported Tuesday that WeWork agreed to be taken over by SoftBank, a deal that would give the Japanese company control of the unicorn.
Neumann is being paid about $1.7 billion as part of the deal, according to the Wall Street Journal, and that’s not including the $700 million Neumann already cashed out in share sales and loans borrowed against his stock.
It’s important to note, as Dan Primack tweeted, that Neumann controlled the board of WeWork.
It’s hard to recall a company in similar straits managing to find nearly $2 billion with which to pay off its founder and former CEO merely to get rid of him.
SoftBank is betting that it’s worth a heck of a lot more than $8 billion, once the conglomerate and investing powerhouse finishes cleaning house.
WeWork was a different sort of company, it’s true.