SoftBank throws WeWork a $9.5 billion lifeline, picks up 80% stake

WeWork founder Adam Neumann will leave the company's board as part of the package, to be replaced by SoftBank executive and newly appointed Executive Chairman Marcelo Claure

WeWork announced on Wednesday it has accepted a rescue package from SoftBank Group Corp., its largest investor, that will give the Japanese conglomerate an 80 per cent stake in the company.

The deal marks the end of an era for the troubled co-working giant, which raised money at a $47 billion valuation in January, pulled out of a botched initial public offering attempt last month and is now valued at less than $8 billion in the bailout.

WeWork founder Adam Neumann will leave the company’s board as part of the package, to be replaced by SoftBank executive and newly appointed Executive Chairman