The con man who managed to extract billions of dollars from supposedly sophisticated venture capitalists, WeWork’s Adam Neumann, after managing to loot hundreds of millions of dollars in his scam, will now be payed $1,700,000,000.00 to go away.
This guy should be in jail, not walking away with billions:
WeWork’s co-founder Adam Neumann is in line for a $1.7bn (£1.3bn) payout as investors seize control of the troubled office rentals empire he co-founded and thousands of employees wait to hear if they will lose their jobs.
Neumann, 40, used to describe WeWork as “largest physical social network in the world” and a company so important it would one day solve the problem of orphaned children.
Now his business – once the US’s most valuable private company – is in crisis. And the only winner appears to be Neumann, who is reportedly stepping back from the corporate crisis he created with a lucrative deal that will hand him $1bn from the sale of his shares plus a $185m “consultancy fee” and a $500m line of credit.
Under the terms of a rescue deal first reported by The Wall Street Journal, SoftBank, the Japanese investment firm that is WeWork’s largest shareholder, will now take control of the company.
The payout to Neumann comes as WeWork weighs up sacking about 2,000 people. The redundancies are on hold while WeWork refinances but are expected soon and have triggered widespread bitterness among WeWork’s 15,000 employees. Many had expected to become millionaires when the company floated but now face losing their jobs. WeWork did not immediately return calls for comment.
As near as I can figure out, VC’s see never going to be profitable unicorns going profit as a way to extract money from idiots further down the line, and they have run out of idiots.
Once bitten, twice shy, I guess.