FILE PHOTO - A woman using a mobile phone walks past the logo of SoftBank Corp in Tokyo May 11, 2015. REUTERS/Toru Hanai/File Photo
Toru Hanai/REUTERS/FILE
FILE PHOTO - A woman using a mobile phone walks past the logo of SoftBank Corp in Tokyo May 11, 2015. REUTERS/Toru Hanai/File Photo
Now playing
01:27
SoftBank funds tech giants. But they're not all successes
AirTag
Apple
AirTag
Now playing
01:17
See AirTag, Apple's new device for tracking your lost stuff
Google Earth's new timelapse feature
Google
Google Earth's new timelapse feature
Now playing
01:09
Google Earth's new Timelapse feature shows 40 years of climate change in just seconds
Now playing
01:32
Scientists turned spiderwebs into music and it sounds like a nightmare
Elon Musk's Neuralink says this monkey is playing Pong with its mind
From Neuralink/Youtube
Elon Musk's Neuralink says this monkey is playing Pong with its mind
Now playing
01:41
Elon Musk's company says this monkey is playing Pong with his mind
CNN
Now playing
02:36
The truth behind Covid-19 vaccines for sale on the dark web
Now playing
05:41
NFTs have completely transformed these digital artists' lives
Boston Dynamics
Now playing
00:48
Boston Dynamics' newest robot has tentacle-like grippers
Energy and Commerce Committee/YouTube
Now playing
02:50
US lawmakers question tech CEOs on misinformation
Now playing
00:55
This robot's 'self-portrait' NFT just sold for nearly $700,000
Now playing
03:19
Slack CEO: We made an 'unforced error' in DM roll out
WASHINGTON, DC - FEBRUARY 10:  Chairman Sen. Bernie Sanders, (I-VT) speaks as Neera Tanden, President Joe Bidens nominee for Director of the Office of Management and Budget (OMB), appears before a Senate Committee on the Budget hearing on Capitol Hill on February 10, 2021 in Washington, DC. Tanden helped found the Center for American Progress, a policy research and advocacy organization and has held senior advisory positions in Democratic politics since the Clinton administration. (Photo by Andrew Harnik-Pool/Getty Images)
Pool/Getty Images
WASHINGTON, DC - FEBRUARY 10: Chairman Sen. Bernie Sanders, (I-VT) speaks as Neera Tanden, President Joe Bidens nominee for Director of the Office of Management and Budget (OMB), appears before a Senate Committee on the Budget hearing on Capitol Hill on February 10, 2021 in Washington, DC. Tanden helped found the Center for American Progress, a policy research and advocacy organization and has held senior advisory positions in Democratic politics since the Clinton administration. (Photo by Andrew Harnik-Pool/Getty Images)
Now playing
03:04
Sanders: 'I don't feel comfortable' about Trump's Twitter ban
LONDON, ENGLAND - JANUARY 16: Prince Harry, Duke of Sussex, the Patron of the Rugby Football League hosts the Rugby League World Cup 2021 draws for the men's, women's and wheelchair tournaments at Buckingham Palace on January 16, 2020 in London, England. The Rugby League World Cup 2021 will take place from October 23rd through to November 27th, 2021 in 17 cities across England. (Photo by Chris Jackson/Getty Images)
Chris Jackson/Getty Images
LONDON, ENGLAND - JANUARY 16: Prince Harry, Duke of Sussex, the Patron of the Rugby Football League hosts the Rugby League World Cup 2021 draws for the men's, women's and wheelchair tournaments at Buckingham Palace on January 16, 2020 in London, England. The Rugby League World Cup 2021 will take place from October 23rd through to November 27th, 2021 in 17 cities across England. (Photo by Chris Jackson/Getty Images)
Now playing
03:19
BetterUp CEO explains Prince Harry's role at the tech startup
An NFT digital home called Mars House by Krista Kim Studio Inc. has sold for $500,000
From Krista Kim Studio Inc./SuperRare
An NFT digital home called Mars House by Krista Kim Studio Inc. has sold for $500,000
Now playing
01:11
This digital home might cost more than your actual home
Rally Studios
Now playing
02:13
One-shot drone video of bowling alley mesmerizes internet
MyHeritage
Now playing
01:01
Watch old photos come to life using AI
(CNN Business) —  

WeWork co-founder Adam Neumann will reportedly get a significant payout under a deal in which SoftBank will take control of the troubled company.

Under the deal, the potential valuation of WeWork would drop to about $8 billion, a stunning fall from its peak of $47 billion, and an additional embarrassment for a company that was supposed to go public not long ago. Under that new expected valuation, SoftBank (SFTBF) would have put more money into WeWork to date than the company is worth.

Japanese conglomerate SoftBank is the largest investor of The We Company, WeWork’s parent company.

The terms of the reported deal, and how much Neumann can actually walk away with, are still coming to light. When first reported by the Wall Street Journal, the amount was pegged at up to $1.7 billion, including a $500 million loan to repay a credit line. Bloomberg similarly reported Neumann’s payout as part of the deal. The New York Times reported the plan indicates Neumann can sell up to $1 billion in stock but he must use those proceeds to pay back the $500 million loan. There is also a $185 million fee, which was similarly reported by other outlets, that will be paid to Neumann for consulting for SoftBank over four years, according to the Times said.

He is expected to step down from the board of directors as part of the SoftBank plan, as well, according to multiple outlets.

WeWork and SoftBank did not immediately respond to a request for comment.

News of the deal caused a stir within WeWork’s ranks. As of early Tuesday afternoon, staffers are still waiting for an email or another form of acknowledgment of the reports from co-CEOs Artie Minson and Sebastian Gunningham, who took over the role from Neumann last month, according to one employee who spoke with CNN Business on the condition of anonymity.

Staffers sent dozens of messages discussing the reports in internal Slack chat room channels, the employee said. Some messages viewed by CNN Business highlight unease over how the deal and the reported payout may impact employees. One message suggested that in light of how much the company talked about the importance of community, Neumann should consider splitting his payout with staff. Another included the hashtag “#WEgotplayed.”

The We Company was said to be weighing at least two last-ditch financing options this week – the other being a possible loan package put together by JPMorgan Chase – to avoid running out of money after its disastrous attempt at an IPO.

The decision to move forward with SoftBank caps off a dramatic two-month period for The We Company. After filing paperwork for a highly anticipated IPO in August, the company faced a barrage of criticisms for how it operated: It had staggering losses, no women on its board and CEO Adam Neumann had unchecked power and numerous potential conflicts of interest.

Neumann ultimately stepped down as CEO amid reports that investors, including SoftBank, wanted to oust him. But he remained non-executive chairman.

While the We Company revised its paperwork to appease investors, it was too little, too late. The company was forced to postpone its IPO last month.

Since then, The We Company is said to be focused on belt-tightening. Several of the startups it acquired are reportedly for sale. It is reportedly gearing up for mass layoffs. The company also said it would cease operating its school, WeGrow, after this school year.

If that’s not enough, some of WeWork’s popular phone booths were pulled out of some rental offices due to “potentially elevated levels of formaldehyde.”