This is how much WeWork founder made before filing for bankruptcy
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America’s giant company WeWork has gone bankrupt. The company struggled for a long time before going bankrupt. However, this struggle has not been successful in getting the company through the bad times. The company has also applied for bankruptcy. The company had to struggle a lot to recover from the impact of Covid 19 on the economy and its failed initial public offering in 2019.
The New York-based corporation filed Chapter 11 in New Jersey, stating that its assets and liabilities were between $10 billion and $50 billion. The filing allows WeWork to continue operations while it works on a plan to repay its debt. Former WeWork CEO Adam Neumann founded the company in 2010 and as of 2019, it was worth $47 billion. He said the bankruptcy filing is “disappointing” and that watching the company struggle has been difficult for him. However, the 44-year-old definitely still has a large net worth, unlike many founders whose fortunes have vanished with their companies.
Let us tell you that when Newman left the company, a significant amount of money was accumulated as it prepared for another public offering – at the time through a special purpose acquisition company (SPAC). In 2021, Mr. Neumann reportedly received $480 million from SoftBank for half of his remaining WeWork stock as part of the SPAC process. He filed the lawsuit after the investment giant first tried to back out of buying his entire $1 billion stake, CNBC reported. According to reports, Newman also received an additional $185 million as a non-compete agreement payment and an additional $106 million in a settlement. In total, Neumann is believed to have made more than $770 million in cash from the 2021 SPAC process alone, despite being removed from the management position years ago.
According to Bloomberg, when WeWork launched in 2021, the former CEO’s stake in the company was still worth $722 million. However, it is not clear how many shares he currently owns. All the shares have become worthless after the company filed bankruptcy.
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