From his credit line, Neumann also shored up assets in the form of $100 million worth of residential properties from Manhattan to California and 10 commercial properties
Even as the WeWork debacle continues to unroll, co-founder Adam Neumann seems to be sitting pretty on $1 billion worth of stock and $185 million in consulting fee from SoftBank’s bailout of his firm, reports Bloomberg.
In a significant move on October 22, the Japanese conglomerate offered a lifeline that valued WeWork at $8 billion, a dizzying drop from its estimated $47 billion earlier this year, Reuters said in a recent report.
While Neumann will leave the company’s board (albeit after assigning two seats), his net worth at the end would be at least $1 billion, as per the Bloomberg Billionaires Index.
Moneycontrol could not independently verify the report.
This, however, is only a fraction of what would contribute to Neumann’s net worth. He sold hundred million dollars’ worth of stock in WeWork’s early funding rounds, besides a $500 million credit line (via WeWork shares) from UBS Group, JP Morgan Chase and Credit Suisse Group, which is expected to be paid off from the SoftBank settlement, Bloomberg added.
What’s significant though is while he enjoyed it, the credit extensions helped Neumann shore up assets in the form of $100 million worth of residential properties from Manhattan to California and 10 commercial properties.
Before its much-awaited initial public offering announcement and subsequent scrutiny, WeWork saw massive commitments as investors received returns undeterred by limp profit margin. SoftBank alone had over $10 billion invested.But with its valuation under question and Neumann jumped off-board as Chief Executive the company’s prospects looked grim.Get access to India's fastest growing financial subscriptions service Moneycontrol Pro for as little as Rs 599 for first year. Use the code "GETPRO". Moneycontrol Pro offers you all the information you need for wealth creation including actionable investment ideas, independent research and insights & analysis For more information, check out the Moneycontrol website or mobile app.