Report: SoftBank to take control of WeWork

NEW YORK — The Wall Street Journal is reporting that WeWork is being taken over by the Japanese tech conglomerate that invested billions in the company before its botched effort to go public.

The shared-office space company is facing a severe cash crunch with its valuation, what investors are willing to pay for shares, plunging.

The Wall Street Journal, citing sources it did not identify, reported Tuesday that WeWork co-founder Adam Neumann will walk away with close to $2 billion from Japan’s SoftBank Group if he severs most ties with the company.

SoftBank is WeWork’s largest investor, already owning about a third of the company.

Neumann, who resigned as CEO last month, will step down from the board as part of the deal, the paper reported.

He will still own a stake in WeWork and he will serve as an adviser to the board going forward.

WeWork did not immediately respond to a request for comment.

The Associated Press