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by personlurking 2436 days ago
Also, from another article (by Axios):

"SoftBank will pay former WeWork CEO and current non-executive chairman Adam Neumann around $200 million to leave the board of directors, give up his voting shares and support SoftBank's takeover, according to multiple sources familiar with the situation."

https://www.axios.com/adam-neumann-wework-softbank-takeover-...
1 comments
TuringNYC 2436 days ago
I'm utterly confused on how Neumann walks away with so much. Given the burn rate and the capital requirements, I cant imagine many other players who can step in at this point. And if no one steps in, the firm is worth zero.

So isnt this a recapitalization of the firm? Why would they need to pay $200M for control if the alternative is some variation of bankruptcy followed by a firesale and cheap buy?

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ksec 2436 days ago
>So isnt this a recapitalization of the firm? Why would they need to pay $200M for control if the alternative is some variation of bankruptcy followed by a firesale and cheap buy?

Because it is obvious if they do Firesale and Cheap buy they would have destroy the company and buy something that everyone knows isn't remotely worth that much. By trying to save it now they could at least get back some of its investment via IPO.

My question is what if Neumann decides to be an ass, and just want to watch everything burn? After all he has the voting shares.

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dodobirdlord 2435 days ago
They could probably sue him. As a member of the board of directors he still has an obligation to act in the interests of the shareholders even if he controls a majority of the votes.
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ksec 2435 days ago
Wow, so it turns there is a difference between Majority of shares (50%+) and Majority of Voting Power.

So hypnotically could he have done it if he had 50%+ vote? Or could he still be sued? And by watching everything burn, I mean he could try to spin it as he will take drastic action to improve on the situation and refuse Softbank's offer.

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dodobirdlord 2434 days ago
> So hypnotically could he have done it if he had 50%+ vote? Or could he still be sued?

Could still be sued.

> And by watching everything burn, I mean he could try to spin it as he will take drastic action to improve on the situation and refuse Softbank's offer.

Having a spin can help in court, but a court is likely to see through it.

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