- Title: WeWork's Neumann to step down as CEO, give up control
- Date: 24th September 2019
- Summary: TOKYO, JAPAN (FILE) (REUTERS) VARIOUS SOFTBANK HEADQUARTERS INTERIORS MOBILE PHONES ON DISPLAY INSIDE SOFTBANK HQ SOFTBANK HQ RECEPTION AREA SOFTBANK LOGO NEXT TO MOBILE DEVICES ROBOT AT SOFTBANK HQ RECEPTION AREA VARIOUS OF SOFTBANK STORE EXTERIORS
- Embargoed: 8th October 2019 19:30
- Keywords: WeWork co-founder Adam Neumann U.S. office-sharing company investors We Company's IPO SoftBank
- Location: SHANGHAI, CHINA / NEW YORK, NEW YORK, UNITED STATES / TOKYO, JAPAN / UNDISCLOSED LOCATIONS
- City: SHANGHAI, CHINA / NEW YORK, NEW YORK, UNITED STATES / TOKYO, JAPAN / UNDISCLOSED LOCATIONS
- Country: USA
- Topics: Company News Markets,Economic Events
- Reuters ID: LVA004AY0QZYL
- Aspect Ratio: 16:9
- Story Text:WeWork co-founder Adam Neumann agreed on Tuesday (September 24) to resign as chief executive of the U.S. office-sharing company and give up majority voting control, bowing to pressure from some of his investors.
The company announced the decision following a board meeting earlier on Tuesday to discuss a challenge to Neumann's authority by his biggest investors, including Japan's SoftBank's venture capital firm Benchmark Capital and Chinese private equity firm Hony Capital, according to people familiar with the deliberations.
The investors amassed a majority on We Company's seven-member board to push for Neumann's resignation as CEO, one of the sources added.
Artie Minson, currently chief financial officer of WeWork parent We Company, and Sebastian Gunningham, a vice chairman for the New York-based start-up, will become co-chief executives, the company said. Neumann will stay on the board as non-executive chairman, the company added.
The leadership changes come after We Company postponed its initial public offering (IPO) last week following push-back from perspective investors, not just over its widening losses, but also over Neumann's unusually firm grip on the company.
This was a blow for SoftBank, which was hoping for We Company's IPO to bolster its fortunes as it seeks to woo investors for its second $108 billion Vision Fund. It invested in We Company at a $47 billion valuation in January.
We Company said on Tuesday it was now evaluating the "optimal timing" for an IPO.
(Production: Aleksandra Michalska)
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