Softbank group and Wework founder terminate $185 million consulting agreement

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 Softbank group and Wework founder terminate $185 million consulting agreement


I dont think the consultation agreement is still in force, Marcelo Clare, executive chairman, said of the agreement. I think Adam may have violated some of the terms of the consultation agreement, so this clause is no longer valid.

Mr. Neumann said he was very helpful from the beginning in helping Softbank understand Wework.

Mr. klauer, also a Softbank executive, declined to elaborate on how Neumann might have breached the agreement, saying it was part of the ongoing litigation. After Wework failed in its initial public offering last fall, Neumann left the company in chaos.

As part of Neumanns departure plan, Softbank agreed to buy about $1 billion of shares from Neumann, refinance $500 million of debt, and pay Neumann about $185 million in consulting fees. Wework employees and others have criticized the money as a bonus for the co-founder.

A spokesman for Neumann did not immediately comment.

Illustration: Softbank agreed to pay Adam Neumann $185 million in consulting fees as part of his exit package from Wework, a deal that has drawn criticism from employees and others.

According to people familiar with the matter, the agreement between Softbank and Neumann included a clause that he would not be allowed to engage in business competing with Wework for four years. At present, Neumann is no longer subject to this restriction, the person familiar with the matter said. The person also said Neumann did not receive the full amount of $185 million.

Neumann sued Softbank this spring for failing to meet its promise to buy nearly $1bn of shares it had agreed to.

Asked if Softbank had learned any lessons from its investment strategy over the past few years, Mr. klauer added, we may have been a bit too aggressive with Wework. We may have allowed this entrepreneur to work too freely without the right involvement of Softbank.

In order to be profitable, our office space occupancy needs to be over 67% to 68%, compared to 80% to 85% before the outbreak, so all we have to do is go back to a similar level, he said Krauer did not provide data on the companys current occupancy rate.

Krauer predicted that after the outbreak, the company and its employees would adopt a mixed working mode, working in the office several days a week and returning home to work.

When people come back, everything will change forever, he said. Some people think the epidemic is over and life is back to normal, but it will never happen because we have completely changed the way we behave as humans. (Chen Chen)

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