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Because he has control over the company. If they don't pay the 1.7bi, then: - SoftBank loses 15bi - 15,000 employees lose their entire paycheck (I don't disa
by felipellrocha 7y ago
Because he has control over the company. If they don't pay the 1.7bi, then:
- SoftBank loses 15bi
- 15,000 employees lose their entire paycheck
(I don't disagree this is insane. But it what it is.)
- toomuchtodo 7y agoA third of WeWork is getting let go regardless, and SoftBank has already lost that $15B.
- jariel 7y agoSoftbank will likely end up making money on this one in the end.
- Traster 7y agoOn the other hand, if Neumann refused to hand over the company and it goes bankrupt, his shares would have no value, he would likely have to sell his assets to cover the personal loans he has due, and the properties he owns that he's renting to wework would also collapse in value with their tenant breaking the contract. It would likely completely wipe him out. So the question is again: Why has Softbank paid $1.7Bn to someone who is desparate to sell.
- NotSammyHagar 7y agoI believe he's giving up control as part of this. They had to pay him to get control.