SoftBank takes control of WeWork as part of bailout, Neumann to leave board

SoftBank Group Corp is taking control of beleaguered WeWork, part of a rescue financing plan that will see former CEO Adam Neuman sever most of his remaining ties with the company he co-founded, according to people familiar with the matter.

The eleventh-hour deal throws a lifeline to WeWork parent We Co, which was on the verge of running out of cash after a failed public offering in September. By salvaging one of its biggest investments, SoftBank will give a second chance to WeWork to start over under new ownership. It also tosses a buoy to Neumann, who will give up his board seat and walk away with as much as $1.2 billion as well as a $500 million credit line from SoftBank, after it pushed him out as chief executive officer last month.