FILE - In this Jan. 16, 2018 file photo, Adam Neumann, co-founder and CEO of WeWork, attends the opening bell ceremony at Nasdaq, in New York. The Wall Street Journal, citing sources it did not identify, reported Tuesday, Oct. 22, 2019, Neumann will walk away with close to $2 billion from Japan’s SoftBank Group if he severs ties with the company. (AP Photo/Mark Lennihan, File)

Report: SoftBank to take control of WeWork

October 22, 2019 - 8:43 am

NEW YORK (AP) — The Wall Street Journal is reporting that WeWork is being taken over by the Japanese investment bank that invested billions in the company before its botched effort to go public.

The shared-office space company is facing a severe cash crunch with its valuation, what investors are willing to pay for shares, plunging.

The Wall Street Journal, citing sources it did not identify, reported Tuesday that WeWork co-founder Adam Neumann will walk away with close to $2 billion from Japan's SoftBank Group if he severs ties with the company.

SoftBank is WeWork's largest investor.

Neumann, who resigned as CEO last month, will step down from the board as part of the deal, the paper reported.

WeWork did not immediately respond to a request for comment.

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