Day: May 4, 2020

WeWork co-founder Neumann sues SoftBank over failed tender offer

FILE PHOTO: Adam Neumann, chief executive officer of U.S. co-working firm WeWork, speaks during a signing ceremony in Shanghai, China April 12, 2018. Picture taken April 12, 2018. Jackal Pan via REUTERS/File Photo

(Reuters) – WeWork co-founder Adam Neumann filed a lawsuit against Japan’s SoftBank Group Corp and its Vision Fund on Monday for terminating a $3 billion tender offer to the office-sharing startup’s shareholders.

The tender offer was part of a $9.6 billion rescue financing package that SoftBank agreed with WeWork in October and gave it control of the company. Since then, WeWork’s occupancy rates have plummeted amid the COVID-19 pandemic.

In April, SoftBank said it would not press ahead with the tender offer because several pre-conditions had not been met, frustrating WeWork’s minority shareholders, who were expecting a payout. The investors included Adam Neumann.

“The abuses committed by (SoftBank) and SBVF (SoftBank Vision Fund) are so brazen that

Read More

Tesla stock rise appears to qualify CEO Musk for $700 million payday

(Reuters) – Tesla Chief Executive Elon Musk appeared to qualify on Monday for a $700 million payday, just three days after he said the electric car company’s stock price was too high.

FILE PHOTO: Tesla Inc CEO Elon Musk speaks at an opening ceremony for Tesla China-made Model Y program in Shanghai, China January 7, 2020. REUTERS/Aly Song/File Photo

Shares of Tesla Inc jumped more than 8% on Monday, putting Tesla’s market capitalization at $141.1 billion at the close. More importantly for Musk, Tesla’s stock market value reached a six-month average of $100.2 billion, according to an analysis of Refinitiv data.

Hitting a six-month average of $100 billion triggers the vesting of the first of 12 tranches of options granted to the billionaire to buy Tesla stock as part of a pay package agreed in 2018. Musk has already met two other requirements by hitting a growth target and far

Read More

Intel buys Moovit transit app for $900 million to help develop robotaxis

JERUSALEM/NEW YORK (Reuters) – Chipmaker Intel Corp (INTC.O) has bought Israeli public transit app maker Moovit for about $900 million to help it develop self-driving “robotaxis” that could take to the streets in early 2022, the company said on Monday.

FILE PHOTO: U.S. chipmaker Intel Corp’s logo is seen on their “smart building” in Petah Tikva, near Tel Aviv, Israel December 15, 2019. Picture taken December 15, 2019. REUTERS/Amir Cohen

Moovit will remain independent while its technology and the data it collects from more than 800 million users in 102 countries will be integrated into Intel’s Israel-based autonomous car unit Mobileye.

The price paid was nearly twice the $500 million valuation when Moovit last raised money in 2018. Intel owned about 7% of Moovit through a previous equity investment and paid about $840 million in cash to assume full ownership.

The deal talks started with Moonvit seeking to

Read More

Fintech startup Robinhood raises fresh funds at $8.3 billion valuation

(Reuters) – Robinhood Markets Inc said on Monday it has raised $280 million in a funding round that valued the online brokerage at $8.3 billion as it benefits from new signups amid increased market volatility and stay-at-home orders due to the coronavirus.

The company, which introduced millennials to equities, options and crypto trading, said the latest round was led by existing investor Sequoia Capital.

Fintech startups have been attracting a flood of investments since last year and the pandemic is accelerating the trend as more customers look to pay without contact and use banking services without stepping into branches.

Last month, fintech startup Stripe, whose products let companies receive online payments and bill customers, raised $600 million valuing it at $36 billion.

Many of these startups were expected to go public this year, but experts tracking initial public offerings believe the COVID-19 pandemic may have forced many to shift their

Read More