The We Company, WeWork’s parent organization, and SoftBank Group Corp. announced that WeWork has received $1.5 billion in funding, which was an acceleration of the existing payment obligation, approved by WeWork’s shareholders at $11.60 per share.
In connection with the completion of the $1.5 billion funding from SoftBank, several governance changes became effective today, including the reconstitution of the WeWork Board of Directors.
As previously announced, the $1.5 billion payment and governance changes are part of an agreement with WeWork that has now been approved by WeWork shareholders, under which SoftBank will provide significant funding to the Company. The financing package includes $5 billion in new debt financing.
READ ALSO : WeWork announces SoftBank deal, Adam Neumann to become board observer
“The $1.5 billion in funding that WeWork received today from SoftBank positions the Company for the future and underlines Softbank’s steadfast belief in the business,” said Marcelo Claure, Executive Chairman of the Board of Directors of WeWork.
Claure added, “Softbank’s high-conviction investment comes with operational support as well as improved governance. With our expanded Board seats we anticipate appointing two additional directors in the near future.”
Pursuant to the previously announced agreement with WeWork and completion of the accelerated $1.5 billion payment commitment, several governance changes are effective immediately.
The Board of WeWork has been reconstituted to include 10 members, initially consisting of:
∙ Five directors designated by either SoftBank or SoftBank Vision Fund, including Ron Fisher, Marcelo Claure, Steven Langman, and two others to be named at a later date;
∙ Two directors designated by existing investors Benchmark Capital and Hony Capital, who are Bruce Dunlevie and John Zhao, respectively;
∙ “Two directors not affiliated with WeWork, who are Jeff Sine and Mark Schwartz; and
∙ One director from the Special Committee of the Board, Lew Frankfort.
Other governance changes, which became effective today include:
∙ Marcelo Claure has been appointed Executive Chairman of the Board.
∙ Adam Neumann has become a Board observer, and the Board has received voting control over his shares.
READ ALSO : WeWork’s co-founder Adam Neumann steps down as CEO