Have you ever wondered about who is behind big companies and real estate like WeWork?
Well, behind WeWork are the Israeli-American businessman Adam Neumann and American businessman Miguel McKelvey. The duo formed the multi-millionaire commercial real estate company in 2010.
Despite being the mastermind behind the multi-millionaire company, Adam Neumann was offered a jaw-dropping amount of $1.7 billion to step down. Is this worth it for Adam?
Co-Founder Is Offered $1.7 Billion To Back-off
Adam co-founded WeWork alongside Miguel McKelvey in 2010. As of 2018, the company managed over 4 million square meters.
In January 2019, the firm announced it would be rebranding to The We Company, and its valuation was stated at $47 billion. As of August 2019, the company was surrounded by criticism over its governance, ability to turn a profit, and business model. In 2018, WeWork lost over $2 billion.
Following the mounting pressure, Adam resigned from his position as CEO and gave up majority voting control to the company as of 26th September 2019.
In October 2019, The Wall Street Journal reported that Adam would receive a massive chunk of cash close to $1.7 billion from SoftBank for stepping down from the company’s board and severing most of his ties with the company.
SoftBank already owns about a third of the company through its Vision Fund investment arm, but the takeover deal would allow them to buy almost $1 billion worth of additional share from Neumann.
In a similar way, SoftBank will throw in another $500 million in credit to allow him to pay off a loan of that amount and a $185 million consulting fee, including the $1.7 billion figure.
If there are no delays, the announcement is expected to be made very soon.
Former CEO & Co-founder Facing A Lawsuit For $1.7 billion
As mentioned above, Adam Neumann was offered a massive chunk of $1.7 billion for his departure from the board of the company. However, a few other shareholders in the company weren’t happy with the deal.
Natalie Sojka reportedly filed a suit against both Neumann and WeWork’s new owners at Softbank in San Francisco Superior Court. As per her lawsuit, it says, “the money granted to Adam is beyond comprehension and is improper.”
Sojka stated the case as a class-action suit on behalf of herself and other minority stockholders.
As of now, no one from the SoftBank or WeWork has publicly commented yet.
How Rich Is Adam Neumann?
According to Celebrity Net Worth, Adam is estimated at $500 million. Whereas, Forbes estimated his net worth to be at $1 billion as of 20th November 2019.
He owns a 60-acre estate in Westchester County, New York worth of $35 million, a $21 million worth mansion in the Bay Area, and two lavish houses in the Hamptons.