Posted on 10/24/2019 6:32:08 AM PDT by C19fan
WeWork's new Executive Chairman Marcelo Claure on Wednesday defended the $1.7billion payout to the office-sharing company's founder Adam Neumann and said there is now 'zero risk of the company going bankrupt'.
According to an audio recording of a meeting he held with employees that was reviewed by Reuters, Claure, who is also the chief operating officer at SoftBank, said: 'There's a level of gratefulness that we're going to have for Adam, because he's the one who built this business.'
The meeting took place a day after WeWork's largest shareholder, SoftBank Group Corp, provided a $9.5billion lifeline and took over the company, including payment to Neumann to give up control.
(Excerpt) Read more at dailymail.co.uk ...
OK Folks,
This is a private company with shareholders.
What is it’s biggest asset? The tax losses. Yes there are limits to some of the pass through but there are always ways around it.
Another advantage is laundering money. Pay a lot to we works for office space and we works doesn’t have to pay any taxes.
Good way to bring money back to US.
Who bails out SoftBank?
It's a Japanese company so, (I guess) who cares?
This whole thing was engineered by JP Morgan who had been extending personal loans to Neumann to finance his extravagant lifestyle. He was in default and certainly would have walked away from those loans if he got fired.
JP Morgan did not want this stain on their balance sheet and this SoftBank deal pays off Neumann's debt, on top of the massive buyout which, of course, he is legally entitled to.
All very tidy.
The guy is kind of an evil genius. He was buying up commercial properties and leasing them to his own company at inflated prices. Now he gets to keep his interest in those properties!
Remember, you don't pull things off like this without a slew of early puff pieces by the WSJ and others calling you a visionary even with all the evidence of your sham in plain view.
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