WeWork's Adam Neumann will reportedly get a $1.7 billion deal to step down from board

By Todd Haselton

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  • Former WeWork CEO Adam Neumann will get about $1.7 million in stock, cash and credit to walk away from the company and give up his voting rights.
  • Neumann has already cashed out at least $700 million in share sales and loans.
  • SoftBank is in advanced talks to take control of WeWork, a decision that could come as soon as Tuesday.

Adam Neumann, CEO of WeWork.

Eduardo Munoz | Reuters

Former WeWork CEO Adam Neumann will get about $1.7 billion to walk away from the company and give up his voting rights, The Wall Street Journal said Tuesday morning. SoftBank will pay Neumann $1 billion for his shares, a $185 million consulting fee and will offer him $500 million in credit to help repay his loans to JPMorgan, according to the report.

SoftBank is in advanced talks to take control of WeWork, a decision that could come as soon as Tuesday, CNBC reported on Monday. SoftBank plans to spend between $4 billion and $5 billion in additional funding and to buy up existing shares The deal would value WeWork between $7.5 billion and $8 billion on a pre-funding basis. WeWork's valuation was roughly $47 billion before its failed IPO.

In its IPO prospectus, released in August, WeWork revealed that it reported revenues of $1.54 billion and a net loss of more than $900 million for the first six months of 2019. Neumann stepped down as CEO and gave up some of his voting power on Sep. 24 before WeWork its pulled its S-1 filing on Sept. 30. Without a cash infusion, WeWork would run out of money by mid-November.

Before WeWork's troubles began, Neumann cashed out at least $700 million in share sales and loans borrowed against his stock.

Read more on The Wall Street Journal.

CNBC's Alex Sherman and David Faber contributed to this report.