Some WeWork Board Members are trying to remove Adam Neumann as CEO

19

A block of directors WeWork intends to push

Adam Neumann's extensive interest

the ending of acting as chief executive after an exciting week in which its ecological behavior and drug use emerged and the anticipated stock market list commenced.

Group including officials attached to

SoftBank Group
Corp.

9984 0.17%

The company's largest investor, Mr Neumann, wishes to separate his title as CEO of Web Co, the parent of the shared office company, people with whom he is familiar.

It is hoped that the board will meet as soon as possible this week and that he may consider a recommendation that Mr Neumann be the non-executive chairperson, some of whom said. This would enable him to stay at the company he put into one of the country's most valuable start-ups, but would introduce new leadership to give an IPO that would give him the money he needed to keep his terrible growth up.

The company burned through more than $ 2 billion in 2018 and is projected by analysts that we will run through the current path next year.

Gamble is no effort made: Mr Neumann has still an alliance among the directors and the ability to fire the full board due to shares he controls having additional votes. But SoftBank, which has more than $ 9 billion in the company and is represented on the board, also has a significant impact and the Japanese conglomerate wants to continue pumping in cash.

We couldn't find out whether each of the directors We – seven including Mr Neumann – is aligned, and the story is fluid.

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Will Adam Neumann, the founder of WeWork, be leaving, and would this be in the interests of the company? Join the conversation below.

SoftBank patience was tested. Earlier this year, he bought shares of Web at a valuation of $ 47 billion, a level that seems to have been significantly exceeded. As we prepared his shares to be listed earlier this month, the company's expected valuation had fallen to about one third of that.

Even at that discount, we have had to put aside the offer of criticism of the company's governance and its financial losses — $ 1.6 billion last year, and growing – despite its rapid-income growth.

The Wall Street Journal reported last week that Mr Neumann marijuana made a flight from New York to Israel, asking an owner of the jet to recall the plane. This exposure raised concerns about Mr Neumann's management style and transactions with the company which he added.

We have already had governance changes to win reluctant investors. On 13 September it reduced the power of oversight of Mr Neumann's shares – leaving him under control – as well as reversing the role of women in corporate affairs and reversing the controversial sale of the company as a “We.” Trademark.

Some SoftBank executives have long been visibly that we have increased valuation and unusual behavior of Mr Neumann, even when they continue to give him money. SoftBank was expected to buy as much as $ 1 billion in stock in an initial public tender, much of which was about $ 3 billion he asked to raise from investors, people who knew them. This commitment was not enough to keep the list on track, although we are committed to doing it this year.

SoftBank CEO

Masayoshi Mac

The voice advocate has long been a part of We and Mr. Neumann, which many people see as the same as a visionary. Mr Mac told CNBC in March that he was still trying to invest more in the company despite some of his own investors being in doubt. SoftBank has invested directly in Web and through the Vision Fund, which raised $ 100 billion in 2017.

The Vision Fund's investment of $ 4.4 billion was evaluated in 2017. We are about $ 20 billion. When most investors made the fund, a pair of Middle Eastern governments, last year investing more, SoftBank stood in itself, having committed $ 4 billion at a valuation of $ 47 billion.

Mr Neumann would not have been the first founder of controversy.

Uber Technologies
Inc.

'S

Travis Kalanick

His board met in 2017 after the tour-marketing company was widely criticized for a chauvinistic and toxic working culture. Uber went in public this spring and was replaced by a new chief executive.

Write Maureen Farrell at maureen.farrell@wsj.com, Liz Hoffman at liz.hoffman@wsj.com, Eliot Brown with eliot.brown@wsj.com and David Benoit at david.benoit@wsj.com

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