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SoftBank to Take Control of WeWork

Co-founder Adam Neumann to step down from WeWork board, while maintaining a stake in the company

The We Co.'s IPO is now postponed after the company announced it would withdraw its request to go public. Here's a look at the company's business model and why some investors were eyeing the risk. Photo: David 'Dee' Delgado/Bloomberg

SoftBank Group Corp. won approval from WeWork’s board to take control of the troubled co-working startup, in a deal that would hand co-founder Adam Neumann nearly $1.7 billion and sever most of his ties with the company.

WeWork, in danger of running out of cash in the coming weeks, chose a rescue offer from SoftBank over a competing proposal from JPMorgan Chase & Co., according to people familiar with the matter. It had asked both parties to submit proposals by a deadline yesterday.

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