New York, NY, United States (4E) - CEO and co-founder of WeWork Adam Neumann sold and borrowed about $700 million in transactions involving his shares in the company, which is the fast-growing co-working startup in the world.
According to a Wall Street Journal Thursday report, Neumann cashed out some of his stake in WeWork in recent years, while also borrowing a large amount of money against his holding.
Experts believe this revelation could severely affect the company in the short term, given the fact that the office-space giant is preparing for an IPO.
Apparently, Neumann sold some of his stakes in WeWork through stock sales during several rounds of financing.
In addition, the Wall Street Journal report points out that the company's CEO used some of the proceeds in order exercise his stock options and being able to purchase more shares in the startup.
The 40-year-old entrepreneur also used the money he gained in this operation to buy over three private residents, and to invest in different startups and commercial real estate.
The company confidentially filed to go public three months ago, and was valued at $47 billion in its January private funding round.
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