SoftBank Group offered nearly USD 10 Bn to WeWork and its shareholders under a takeover plan that would keep the U.S. office-space sharing start-up afloat.  According to the sources, the move also suggests the exit of its Chairman Adam Neumann.

The various reports suggest that Neumann could step down from The We Company’s board as part of the deal with SoftBank and become an adviser. SoftBank Chief Operating Officer Marcelo Claure would succeed Neumann as Chairman.

According to a report, WeWork, once valued at USD 47 Bn, will be worth as little as USD 7.5 Bn on paper as SoftBank  takes control of the struggling co-working business.

SoftBank, a long-time WeWork investor, plans to invest between USD 4 Bn and USD 5 Bn in exchange for new and existing shares. 

The Japanese telecom giant’s move come precisely four weeks afterCo-founder and former CEO Adam Neumann resigned control of the company and transitioned into a non-executive chairman role, and about three weeks after WeWork decided to delay its highly anticipated initial public offering. WeWork’s Vice Chairman Sebastian Gunningham and the company’s president and Chief Operating Officer Artie Minson are currently serving as WeWork’s co-CEOs.

In addition to those personnel shake-ups, WeWork has lost its communications chief, Jimmy Asci, its Chief Marketing Officer, Robin Daniels and several others. Meanwhile, the company has slashed hundreds of jobs, and opted to shut down its school, WeGrow, in 2020.

According to the recent development, WeWork has accepted SoftBank's takeover offer. As a part of the deal, Neumann  is getting USD 1.7 Bn.