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Neumann may gain $245 million more in stocks from WeWork’s exit

By Shubhangi on May 28, 2021 | 03:38 AM IST

Adam Neumann, the erstwhile leader of WeWork, would gain extra bonus of stock riches at his separation from the company if its plan of going public is successful.

Neumann would earn shares worth more than $245 million at the current price if the company’s plan succeeds.

On Neumann’s exit from WeWork, he was already given the ability to sell roughly $480 million in stock to SoftBank, in addition to getting $50 million in cash, another $50 million to cover legal fees and a five-year extension on a pre-existing $430 million loan from the Japanese conglomerate, reported Bloomberg.

WeWork is planning to go public by merging with a special purpose acquisition company, BowX Acquisition Corp. The merger is planned for the third quarter.

According to the filing, the share of the company must be above $10 after expiration of restrictions on Neumann’s stock sales.

The filing also said that before the settlement agreement with Neumann, he would already receive the shares but negotiated for them to be fully vested with a base price of $0.

(With inputs from Bloomberg)

Picture Credits: Bloomberg

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