WeWork's new chairman defends payouts to founder, says company will survive

  • 📰 Reuters
  • ⏱ Reading Time:
  • 62 sec. here
  • 3 min. at publisher
  • 📊 Quality Score:
  • News: 28%
  • Publisher: 97%

Australia News News

Australia Australia Latest News,Australia Australia Headlines

WeWork's new Executive Chairman Marcelo Claure on Wednesday defended huge p...

- WeWork’s new Executive Chairman Marcelo Claure on Wednesday defended huge payouts to the office-sharing company’s founder Adam Neumann and said there is now “zero risk of the company going bankrupt,” according to an audio recording of a meeting he held with employees that was reviewed by Reuters.

In response to a question from one WeWork employee, Claure said Neumann was like any shareholder of the company who deserved the right to sell his shares. SoftBank has also agreed to extend him a $500 million loan to repay a credit line from JPMorgan Chase & Co, as well as pay him a $185 million fee for a four-year assignment as a consultant to WeWork, one of the sources said.WeWork cofounder Miguel McKelvey had kicked off the meeting by introducing Claure to the staff at the company’s New York headquarters and addressed the tumultuous few weeks WeWork had experienced.

The IPO was abandoned in September as investors balked at sky-high valuations - a deal in January had tagged its worth at $47 billion. The rescue by SoftBank now values it at just $8 billion. “My goal is to be part of one of the most amazing comebacks in history and to build jointly with you guys,” said Claure, who is also the chief operating officer at SoftBank.However, it was going to focus very differently, he said. “Make no mistake, the world has changed. The growth stories don’t sell any more,” he said. Adding that the challenge was to “build a company that has an amazing product, that delights our customers, but also makes money.

We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 2. in AU
 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.

Yeah, yeah--the rich ALWAYS win the meat.

Disfrazaron una inmobiliaria diciendo que eran una empresa de tecnología...

This guy is getting $185 million as a consulting fee. How many salaries could that have paid?

Seems like a shakedown to me

Australia Australia Latest News, Australia Australia Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Nasdaq executive is 'bullish' on WeWork and hopes the company will IPO eventually'We hope eventually it will list on Nasdaq,' Nasdaq Vice Chairman Edward Knight said Tuesday. Con artist, company worth billions less than value, paid to leave, What a disaster this is Ask him if he smokes cannabis. lol butcher still bullish on beef.
Source: CNBC - 🏆 12. / 72 Read more »