WeWork co-founder Adam Neumann is selling his lavish 11-acre California estate for $27.5million as he trudges on in legal battle with SoftBank Group Corp, which pulled out a buyout deal that would have given the ex-CEO a $1billion golden parachute.
Neumann, 41, became a billionaire with workspace start-up WeWork but resigned in September 2019 over concerns of how he ran the company and his botched attempt to take the company public.
Since his exit from WeWork has suffered major losses and cuts and the company’s valuation sunk to $2.9billion from $47billion last January, according to a Softbank statement in May.
Neumann has set his seven-bedroom, nine and a half-bathroom property in Corte Madera, located 15 miles north of San Francisco, on the market, according to Bloomberg.
He purchased the estate for $21.4million in 2018. Neumann owns several properties in New York including a 60-acre estate in Westchester County, a 6000-square-foot condominium near Gramercy Park in Manhattan, and two homes in the Hamptons.
The 800 Corte Madera Avenue property is known as the ‘Guitar House’ because the mansion has a living room shaped like the musical instrument.
The luxurious home was designed by architect Sim Van der Ryn and was formerly owned by the late music producer Bill Graham, according to a prior Zillow listing.
The home boasts seven bedrooms, an office space, a pool, water slide, home theatre, racquetball court, and organic gardens and an orchard, according to the Zillow listing.
It also features a music studio/home theatre and spacious two bedroom, two bathroom guesthouse.
The ousted WeWork CEO has also listed one of his Manhattan residences on the market.
Last year Japanese conglomerate SoftBank agreed to bail out The We Company after its failed IPO last year in a $3billion tender offer, saving the company from financial collapse.
The deal would’ve allowed the bank to buy shares of WeWork at an agreed upon price last year and the money would’ve gone to current and former employee shareholders, outside shareholders, and ousted CEO and co-founder Adam Neumann, according to The Verge.
Neumann would have sold nearly $970million of his WeWork shares to Softbank and receive cash payments of $185million.
But SoftBank backed out of the deal in April saying WeWork didn’t meet the conditions of its contract and cited legal inquiries by the US Department of Justice and the Securities and Exchange Commission.
In May Neumann filed a lawsuit against Softbank for deserting the deal accusing the investor of breaching its contract and ‘secretly taking actions to undermine’ the agreement.
He wants to merge the case with a similar suit filed by WeWork’s board in April. SoftBank dashed the claims as a ‘desperate and misguided attempt’ to rewrite the deal’s history and original agreement.
Softbank said ‘under the terms of our agreement, which Adam Neumann signed, SoftBank had no obligation to complete the tender offer in which Mr Neumann — the biggest beneficiary — sought to sell nearly $1 billion in stock.’