WeWork says $185M deal with Adam Neumann no longer in place
WeWork says that SoftBank's $185M deal with Adam Neumann is no longer in place. Yahoo Finance's Melody Hahm shares the details.
Video Transcript
JULIE HYMAN: And now we're going to get to Word on the Street. We're going to check in with our panelist on a story she is watching today. Melody, you're looking at the latest for Adam Neumann of WeWork. It looks like he's out of a gig.
MELODY HAHM: Yeah, remember when we talked about WeWork on a daily basis? Of course, they have rebranded to the We Company, and then now they've re-rebranded to WeWork.
According to Marcelo Claure, who is the SoftBank COO and the executive chairman of WeWork, speaking at the Wall Street Journal conference yesterday, he says that Adam Neumann seems to have violated the consulting gig. The contract was worth $185 million. We don't know any of the details as to how exactly it was violated.
We know there is a non-compete clause for four years after he departed last year very acrimoniously in a very kind of nasty exit of sorts. We do know that Marcelo Claure does anticipate that WeWork should become profitable by the end of 2021. I think that timeline will be pushed back from here.
JULIE HYMAN: All right, Melody Hahm, thank you so much. Appreciate it.
