SoftBank Wires $1.5 Billion to WeWork Before Cash Runs Out
- Japanese conglomerate had agreed to accelerate investment
- Cash infusion formalizes governance changes at company
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WeWork said it received an early payment of $1.5 billion from SoftBank Group Corp., as the co-working company was weeks away from running out of money.
As a result, a slate of governance changes went into effect Wednesday, including the replacement of co-founder Adam Neumann as chairman and the assignment of five board seats to SoftBank, which will take a majority stake. WeWork also said it appointed a new independent director to the board, Jeff Sine, co-founder of financial firm Raine Group.