Softbank CEO and chairman Masayoshi Son is in favor of ousting WeWork CEO Adam Neumann, according to sources and reports in the US media. Japan's Softbank is one of the major shareholders in WeWork. A board of directors meeting could be convened later this week with Benchmark Capital, which has a representative on the board, also reportedly supporting the removal of Adam Neumann.
The latest reports come in the wake of WeWork's postponement of its IPO, which was meant to be the largest on Wall Street this year. But after the company's results showed huge losses, its original $45 billion valuation was cut to $20 billion and is likely to be cut again.
The shared workspace real estate company was founded by Israeli CEO Adam Neumann, his wife Chief Brand and Impact Officer Rebekah Neumann and Chief Culture Officer Miguel McKelvey. In addition to concerns about WeWork's financial results and business model, there have also been corporate governance issues and reports about Neumann's personal lifestyle. His private jet was reportedly grounded after crew found marijuana aboard. Neumann has also said that he wants to become Israel's prime minister, and president of the world.
Softbank would like to replace Neumann with a more 'professional' CEO, while Neumann himself would remain in the company, perhaps as a non-executive chairman.
Published by Globes, Israel business news - en.globes.co.il - on September 23, 2019
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