(Bloomberg) -- WeWork co-founder Adam Neumann has a new title: ex-billionaire.
SoftBank Group Corp.'s decision to scrap an October agreement to buy $3 billion of WeWork stock means the former chief executive officer's fortune has plummeted 97% to $450 million in less than a year -- wiping away $13.5 billion of his estimated net worth, according to the Bloomberg Billionaires Index.
Because the deal collapsed, Neumann won't be able to sell as much as $970 million of stock in the co-working company. The agreement had already drawn scrutiny even before the coronavirus pandemic routed markets and reshaped the global economy.
While SoftBank's decision leaves Neumann with a larger chunk of the firm he helped found a decade ago, those shares are likely worth less than SoftBank had offered for them. WeWork set a strike price of $4.12 for employee stock options in November, far lower than the $19.19 SoftBank was set to pay as part of the rescue.
Asher Gold, a spokesman for Neumann, declined to comment.
The coronavirus pandemic has brought major economies to a standstill, devastating co-working companies. WeWork's locations stand practically empty as tenants stay home. Its bonds trade at less than 40 cents on the dollar and are yielding 36%. Shares of rival IWG Plc plunged 60% in the first quarter.
Neumann, 40, already had billions erased from his fortune last year, at least on paper, as WeWork's private market valuation collapsed. His net worth rose to $14 billion last year before dropping to $1.3 billion at the time of SoftBank's bailout, according to Bloomberg's wealth ranking.
A special committee of WeWork's board said in an emailed statement that it “will evaluate all of its legal options, including litigation,” against the Japanese conglomerate.
Read more: SoftBank Abandons $3 Billion Deal With WeWork Investors
The fortune of SoftBank CEO Masayoshi Son is also under strain. Shares of SoftBank have dropped 21% this year, paring his net worth to about $12 billion, as investors fret about the company's debt pile. About 40% of Son's shares are pledged as collateral, according to regulatory filings.
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