This was a blow for SoftBank,which was hoping for We Company's IPO to bolster its fortunes as it seeks to woo investors for its second $US108 billion ($159 billion) Vision Fund.
SoftBank invested in We Company at a $US47 billion valuation in January. But investor skepticism led to the start-up considering a potential IPO valuation earlier this month of as low as $US10 billion,Reuters reported.
We Company had vowed to press ahead with an IPO by the end of the year. But there was little sign that IPO investor sentiment would change,threatening the value of the stakes,not just of outside investors in the company,but of Mr Neumann as well.
The venture capital world's biggest upset then morphed into one of corporate America's most high-profile boardroom dramas. SoftBank managed to muster enough opposition to Neumann in a meeting of We Company's seven-member board on Tuesday to convince him to step down. Reuters had reported on Monday that Mr Neumann had engaged in talks about changes to his role.
"In recent weeks,the scrutiny directed towards me has become a significant distraction,and I have decided that it is in the best interest of the company to step down as chief executive,"Neumann said in a statement.
Artie Minson,currently chief financial officer of WeWork parent We Company,and Sebastian Gunningham,a vice chairman for the New York-based start-up,will become co-chief executives,the company said. Mr Neumann will stay on the board as non-executive chairman,the company added.
Minson will oversee We Company's finance,legal,human resources,real estate and public communications,while Gunningham will take responsibility for product,design,development,sales,marketing,technology and regional teams.