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To be clear, Neumann's $1.7 billion payout is from SoftBank shareholders. There's nothing obviously criminal about SoftBank's bailout. But I agree SoftBank didn
by macspoofing 7y ago
To be clear, Neumann's $1.7 billion payout is from SoftBank shareholders. There's nothing obviously criminal about SoftBank's bailout. But I agree SoftBank didn't have to do it. WeWork was ostensibly bankrupt and SoftBank could have dictated pretty much any terms they wanted.
- toomuchtodo 7y agoSoftBank is trying to obtain a $2.8B loan for turning around WeWork [1]. Sunk cost fallacy at scale. SoftBank should've burned WeWork and Neumann's comp to the ground, while still paying out severance to the rank and file ("shoot the hostage"). Instead, SoftBank looks incompetent, Son looks incompetent, Neumann walks away a billionaire for delivering nothing of value, and layoffs are still happening. They're doubling down on financially destructive decisions. This is what happens when you have more money and vanity than courage. [1] https://asia.nikkei.com/Business/SoftBank2/SoftBank-in-talks-with-Mizuho-and-Japan-banks-for-2.8bn-loan https://asia.nikkei.com/Business/SoftBank2/SoftBank-in-talks... (SoftBank in talks with Mizuho and Japan banks for $2.8bn loan)
- rchaud 7y agoThey're doubling down to save face. They're betting that WeWork can survive as a much smaller company and that in 5 years people will forget what a disaster this was.
- deleted 7y ago[deleted]
- workthrowaway 7y agoi thought part of it were also consultancy fees for him to be a consultant for the company many years to come?
- uptown 7y agoYes, in the same way that high level employees leave those roles to spend more time with their families.
- empath75 7y agoIf I owned shares in softbank, I’d be livid about him flushing more money down that hole. It makes me suspect that if WeWork collapses, softbank would go down with it.