Co-founder Adam Neumann will leave the board but retain “observer” status, reports BBC.
The deal marks the end of a tumultuous period for WeWork – once valued at nearly $50bn – that saw Mr Neumann step down as chief executive as questions over his leadership emerged.
The former boss is expected to be handed a sizeable payout. The Wall Street Journal reported the deal could see Mr Neumann receive nearly $1.7bn as he sells his shares in the company and through other fees.
Under the agreement, Softbank will “accelerate” an existing commitment to fund $1.5bn, in addition to new financing and issuing a tender offer for existing shareholders.The Japanese investment giant already owned about a third of WeWork.