AP Photo/Mark Lennihan
- Ousted WeWork CEO Adam Neumann is no longer a billionaire, according to Bloomberg.
- The cofounder and former executive is now worth an estimated $450 million after SoftBank abandoned its deal to buy $3 billion worth of WeWork stock.
- The deal had included buying nearly $1 billion in shares from Neumann.
- Neumann was reportedly worth as much as $14 billion prior to WeWork's failed initial public offering last year.
- For more WeWork stories, click here.
Former WeWork CEO Adam Neumann is no longer a billionaire.
The ousted executive has lost his billionaire status following SoftBank's decision to pull out of an October bailout deal, Bloomberg reports.
SoftBank had planned to purchase $3 billion worth of WeWork shares from other investors and employees as part of its plan to rescue the real-estate giant following its canceled initial public offering last fall. As part of the plan, SoftBank would put $970 million toward buying back shares from Neumann, part of a golden parachute that, when it was announced, drew criticism from experts who called the decision "stone-cold crazy."
Now, Neumann will be left with a larger portion of WeWork shares that are likely worth much less than SoftBank has planned to offer, according to Bloomberg.
Estimates of Neumann's net worth have varied. Forbes last year estimated Neumann's net worth as $4.1 billion. In October 2019, Forbes said it had dropped to $1 billion, and, soon after, predicted Neumann had lost his billionaire status. These days, Forbes lists Neumann's net worth as $750 million.
Bloomberg estimated Neumann's fortune was much higher, reaching $14 billion prior to WeWork's failed IPO and dropping to $1.3 billion following the announcement of SoftBank's bailout. Now, Bloomberg estimates Neumann's wealth is worth about $450 million, a decrease of 97%.
Asher Gold, a spokesperson for Neumann, did not immediately respond to Business Insider's request for comment.
Neumann was pushed out of WeWork following the coworking startup's disastrous IPO last fall and intense public scrutiny of Neumann's leadership style and use of company funds, as well as WeWork's nonstop party culture.
Prior to the controversy, Neumann and his wife, Rebekah, were known for their lavish lifestyle. Neumann spent more than $80 million on five homes, including a Hamptons mansion, a farm estate in Upstate New York, and a $21 million home in the Bay Area.
See Also:
- The career rise and fall of Adam Neumann, the controversial WeWork cofounder
- SoftBank confirms abandoning its plan to buy $3 billion worth of WeWork shares, citing 'significant' criminal and civil investigations
- SoftBank is backing out of its plan to buy $3 billion worth of WeWork shares, including nearly $1 billion from former CEO Adam Neumann
