WeWork, the coworking unicorn startup whose IPO had been one of the most highly anticipated public offerings of 2019, has mostly imploded.
The company’s largest investor, SoftBank, is taking control of the struggling company, per the Wall Street Journal, infusing the cash-strapped firm with a rescue funding package.
The deal values the company at $8 billion — a small fraction of WeWork’s peak valuation of nearly $50 billion earlier this year. Reportedly, WeWork is so short on funds that it had to delay laying off its staff because it couldn’t pay their severance packages.
The deal also cuts off most ties between the company and its former CEO and founder Adam Neumann, who will give up most of his stock in the company in exchange for nearly $1.7 billion, including a $185 million consulting fee, per the Journal’s report.