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Struggling real estate company WeWork is reportedly accepted a generous payout and rescue agreement for controversial co-founder Adam Neumann.
The deal is expected to buy more billions of WeWork shares, including Japanese firm Softbank's $ 1 billion from Neumann.
The deal, which includes $ 5 billion in debt financing, gives Softbank control over the company.
That's due to the collapse of the WeWork plan to raise money through the stock market.
The Wall Street Journal first reported the terms of the rescue plan.
The value of WeWork is about $ 8 billion (£ 6.1 billion), a sharp drop in Softbank, which is about $ 50 billion previously invested in WeWork.
According to Reuters, Japan's huge investment company, which already owns about a third of WeWork, has invested about $ 19 billion, more than twice the current value of the company.
According to the report, Neumann agreed to support the rescue plan on behalf of JP Morgan on behalf of a $ 185 million consulting fee and a $ 500,000 credit line. He is also expected to resign from the WeWork Board. He will hold a smaller stake in the company.
A considerable amount of cash & # 39;
Ron Torossian of PR company 5W PR called the exit package Neumann's "win", which was forced to be chief executive last month after WeWork's planned stimulus last month caused trouble.
"Many CEOs pushed out of the company they founded don't go out with $ 1 billion in cash," he said. "Neumann wasn't right to lead the company at the time, but his donations were big enough to guarantee a significant amount of cash."
Helping to rent common office space and popularize collaboration, WeWork has grown from a single office in New York City to more than 500 locations around the world. However, about $ 900 million was lost in the first six months of this year.
The company's stock offering received a lukewarm response from the investor, who raised concerns about the company's financing and management. WeWork officially stopped the stimulus plan last month.
The company is now said to be cutting some of its business and preparing to sell it in order to correct its finances.