Experts react to Adam Nuemann's 'stone cold crazy' WeWork buyout - Business Insider

  • 📰 BusinessInsider
  • ⏱ Reading Time:
  • 52 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 24%
  • Publisher: 51%

Business News News

Business Business Latest News,Business Business Headlines

Tech and finance experts are shocked by SoftBank’s 'stone cold crazy' $1.7 billion golden parachute for ousted WeWork CEO Adam Neumann

reported Tuesday morning, a move that sent reverberations through the world of tech and finance.

"It's stone cold crazy," said Eric Schiffer, CEO of the Patriarch Organization, a technology and media private equity firm. "I think SoftBank blinked, and Neumann walks away with one of the biggest hauls in modern history when he should have gotten very little." The sheer amount of money Softbank is reportedly giving Neumann struck multiple experts as surprising.

"WeWork and SoftBank and perhaps even JP Morgan are in some level of a reputational crisis right now," Kossovsky said. "Reputation risk can often be mitigated by sacrificing an executive or a board member … but throwing him overboard with a golden parachute does deliver a mixed message.

"[Shareholders] are getting the opportunity to sell into SoftBank's tender offer, so they are probably feeling better than they were yesterday," he said. "The WeWork shareholders themselves are primarily sophisticated parties who would likely be embarrassed to sue claiming they had been bamboozled.

 

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

SAI $1bn secondary round + $500m in credit + $186m “consulting fee”

Hey SoftBank that consulting fee of $185 million should go to profgalloway for recognizing the bullshit propped up valuation from day one. WeWorkAdam deserves nothing other than to pay those thousands of employees whom jobs were cut as a result.

MADNESS An over valued proposition to begin with on a concept u can’t ring fence just like Uber. SoftBank,invested about $10.5 billion in WeWork, will lend them $5 billion and buy upto $3 billion shares. This isn’t the last we have heard of this story more than green mail.

techinsider Corruption, collusion, conniving. It’s frikkin EVERYWHERE.

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:

 /  🏆 729. in BUSİNESS

Business Business Latest News, Business Business Headlines

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

WeWork Documentary in the Works from Business InsiderCampfire, behind the Netflix doc 'The Innocent Man,' will produce the feature. Possible titles include: • We Didn't Work • We Started The Dumpster Fire • WeeWeeCompany • We Just Wanted Our IPO To Work • We Shouldn't Have Hired That CEO • We Not You • We vs. Them • WeirdWork • WeLost
Source: THR - 🏆 411. / 53 Read more »

SoftBank takes control of WeWork in bailout deal; Neumann out - Business InsiderThe Japanese investor will give Adam Neumann $1.7 billion. He'll get a $185 million consulting fee and will step down from the board. GoldenParachutes...
Source: BusinessInsider - 🏆 729. / 51 Read more »

WeWork is the largest flex space operator in the Unites States - Business InsiderAccording to a recent study by CBRE, as of the second quarter of 2019, flexible office space in the US has increased by over 600% since 2010. But maybe WeWork may not be that for much longer.
Source: BusinessInsider - 🏆 729. / 51 Read more »