Softbank is coming to the financial rescue for WeWork. The two companies announced a deal late Tuesday night that will give the Japanese technology conglomerate an 80 percent ownership stake in WeWork, the former Wall Street darling that now finds itself embroiled in bedlam.

Under the agreement, Softbank will inject WeWork — officially called The We Company — with $5 billion of new financing and accelerate its existing commitment to provide $1.5 billion next year. The funding will provide WeWork with "significant liquidity to execute its business plan" and fuel the company's path to profitability, a joint statement read. The deal also included at $3 billion tender offer to existing shareholders.

Adam Neumann, WeWork's embattled founder and former CEO, will also step down from the company's board and give up his shares. The deal did not disclose the financial details of Neumann's removal, but earlier reports put the buy out at up to $1.7 billion. Neumann will stay active as a board observer.

"It is not unusual for the world's leading technology disruptors to experience growth challenges as the one WeWork just faced," said Masayoshi Son, Softbank's chairman and CEO. "Since the vision remains unchanged, SoftBank has decided to double down on the company by providing a significant capital infusion and operational support."

WeWork, which operates 528 co-working spaces in 29 countries, first came under pressure in August after the company attempted to go public. The initial public offering was quickly postponed after investors began scrutinizing the company's debt, financial decisions, and questionable governance practices.

George Schultze, a hedge fund manager and the founder of Schultze Asset Management, told Cheddar Tuesday that WeWork has no path forward "unless Softbank keeps throwing more money into the oven for burning."

Softbank's shares were down 2.5 percent on the Tokyo Stock Exchange at close on Wednesday local time.

Artie Minson and Sebastian Gunningham, the current co-CEOs of WeWork, said that Softbank's funding will give the company a "platform for growth and capital returns" for investors and employees. "We will have the flexibility to continue streamlining our assets and stabilizing the business without sacrificing our global brand and exceptional products," the co-CEOs said in a statement.

Softbank also announced that Marcelo Claure, the firm's current chief operating officer, will be appointed to the position of executive chairman of the board of directors of WeWork.

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