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SoftBank Seeks To Take Control Of WeWork Through Financing Package : WSJ

SoftBank has prepared a financing package to take control of WeWork and further sideline its founder Adam Neumann, the Wall Street Journal reported, citing people familiar with the matter.

SoftBank already owns one-third of WeWork, but is aiming to invest several billion dollars in additional equity and debt in the company. The potential deal would shift Neumann's already diminished voting power to the Japanese conglomerate, the Journal reported.

Last month, WeWork co-founder Adam Neumann said he decided to step down as chief executive officer of sharing startup, calling the increased scrutiny he faced in recent weeks "a significant distraction." But, he would continue as non-executive chairman of the board.

Neumann came under fire after the company's prospectus filing for the IPO revealed heavy losses and a wide discrepancy in the distribution of power between him and the company's other shareholders.

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