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Given that WeWork has already raised $13B, and the new premoney is $8B, why isn’t Adam wiped out by the preferences on the old investment? Was Softbank buying
by paulsutter 7y ago
Given that WeWork has already raised $13B, and the new premoney is $8B, why isn’t Adam wiped out by the preferences on the old investment?
Was Softbank buying common shares in some prior rounds?
- marcinzm 7y agoAs I understand it, Adam's shares have much higher voting rights. They may or may not be worth anything but they control the company.
- hkmurakami 7y agoThey have 10-1 voting rights. There were talks of this being reduced to 3-1 during the IPO talks, but those broke down when the IPO was pulled.
- throwawaysea 7y agoDo you mean he would voluntarily agree to reduce his voting rights? Or was there some means to force him into that?
- paulsutter 7y agoIt’s an interesting standoff because his only negotiating stance would be to refuse to accept the investment and key the company go bankrupt. I guess avoiding that is worth $1.7B. Softbank would control the company after bankruptcy anyway, but the process would be messy
- hkmurakami 7y agoPresumably they may have opted for a very ominous debt package, which would have been senior to Softbank's equity, which is another thing SB would have liked to avoid.