Lead investor SoftBank will reportedly pay co-founder Adam Neumann US$1.7 billion for US$1 billion worth of shares, as well as a US$185-million consulting fee and US$500 million in credit to repay a loan from JPMorgan Chase, which submitted a competing offer for control of the firm. The deal, which values the company at US$8 billion—compared to January’s US$47 billion from SoftBank—will see Neumann step down from the board and cut most of his ties with the company. SoftBank will also spend up to US$3 billion buying out shares from other employees and investors. (Wall Street Journal)

Talking point: This is the biggest change at the embattled office-rental company since Neumann was ousted as CEO in late September, following the firm’s failed IPO and a wave of criticism over his leadership. The credit offer is a major component of the deal, since Neumann had a line of credit tied to his stock in the company when it was worth much more than it is today. The turbulent six weeks that led to the IPO’s cancellation will soon be the subject of a documentary. Meanwhile, a cash shortage spurred by the failed IPO has reportedly led the firm to delay its plans to lay off thousands of employees earlier this month—many of whom were paid partially in shares—because it couldn’t afford the severance costs.