Goldman Sachs has offered a line of credit worth $1.75 billion to WeWork after its demise that led to 2,400 layoffs nationwide in October, Bloomberg News reported Monday, citing people familiar with the matter.
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Coincidentally, disgraced WeWork founder Adam Neuman's exit package handed to him in October was worth $1.7 billion.
"This has nothing to do with [the] Neumann payout," a Goldman source told The New York Post. "This is a letter of credit facility for [WeWork] to be able to [rent new space from] landlords."
The office-space rental company posing as a tech startup was worth about $47 billion before its downfall when the company's financial information went public, highlighting Neuman's severe mismanagement of and deceptive optimism for the company.
WeWork chose a $9.5 billion rescue offer from investor SoftBank over a competing proposal from JPMorgan Chase in late October, which was expected to value WeWork at about $8 billion, the Wall Street Journal reported.
"JPMorgan will be 100 percent driving some of these narratives on the street," a source told the Post regarding the $1.75 billion bailout amount. "They are bitter they are no longer involved."
Softbank then turned to Goldman in its effort to pull together $5 billion in debt financing.
The New York-based startup has lost money every year since 2016, with the shortfall widening to $1.61 billion last year. In the first six months of 2019, expenses outpaced revenue by $689.7 million, according to a regulatory filing.
FOX Business' James Langford contributed to this report.