Softbank pulls the plug on WeWork bailout, giving co-founder Adam Neumann another black eye

Womp womp, Adam Neumann, co-founder and former CEO of WeWork.

A source tells Yahoo Finance Softbank Group’s $3 billion tender offer for WeWork — designed late last year to partly bailout the struggling office space startup — will not go through. The deadline for the tender offer was April 1. However, Softbank remains committed to providing up to $5 billion in debt to WeWork to help boost its working capital, the source says.

A WeWork spokesperson didn’t immediately return Yahoo Finance’s request for comment.

The biggest loser here is Neumann.

Neumann had been prepared to haul in $1 billion by tendering a slug of his stock to Softbank. That drew the ire of WeWork employees (and other investors) many of which are sitting on worthless stock options because of the botched leadership of Neumann.

The Wall Street Journal first reported several weeks ago Softbank may not go ahead with the tender offer.

This is breaking news, check back for more.

Brian Sozzi is an editor-at-large and co-anchor of The First Trade at Yahoo Finance. Follow Sozzi on Twitter @BrianSozzi and on LinkedIn.

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