October 22, 2019 / 1:15 PM / 20 days ago

WeWork board accepts SoftBank rescue deal - source

Oct 22 (Reuters) - WeWork’s board has accepted a takeover plan proposed by Softbank Group, handing control of the office-sharing startup to the Japanese firm, according to a source directly familiar with the matter.

Reuters reported on Monday that SoftBank had offered a package worth nearly $10 billion to WeWork and its shareholders under a plan that would keep the company afloat and lead to the exit of its Chairman Adam Neumann.

The Wall Street Journal reported on Tuesday that under the deal agreed with the board, Neumann would be paid nearly $1.7 billion by SoftBank, funded by a new credit line and the sale of roughly $1 billion of his WeWork stock.

WeWork did not immediately respond to request for comment. (Reporting by Greg Roumeliotis and Joshua Franklin in New York, Anirban Sen in Bangalore; Editing by Patrick Graham)

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