Inside WeWork’s IPO meltdown: How Adam Neumann and Wall Street’s chaotic partnership obliterated $40 billion in value

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>Instead, negative press was mounting as the hours ticked away, skewering WeWork for its hefty losses ($1.6 billion), the kooky language in its financial document (it was dedicated to “the energy of we”), Neumann’s long list of conflicts (he rented properties to WeWork), and — glaringly — a two-sentence disclosure that WeWork had purchased the trademark to the word “We” from a Neumann-run entity for $5.9 million in stock. >On the phone, Neumann screamed at copresident Jen Berrent, who, along with CFO and copresident Artie Minson, was helming the IPO. The trademark fuss in particular had blindsided him. >Why didn’t you tell me, he yelled. >Neumann was a laughingstock, and he wasn’t taking it well.

LisaMck041

Funny thing is that if they had started with a more competent and less shady CEO, they’d probably do pretty well right now. With the rise in remote work, I could see more companies preferring flexible office leasing like WeWork provides. Instead Neumann has really destroyed the brand, and Sandeep has his work cut out for him.

zachalicious

Are you kidding me? Yeah.. the value never existed in the first place.

bobbybottombracket

obliterated $40 billion in value” No, the valuation was not obliterated, the valuation was corrected to a sane number.

TenderfootGungi

I remember the story of Son asking Neumann who wins in a fight, the guy who is more skilled or the guy who is more crazy and when Neumann answered “the guy who is more crazy” he gave him a huge investment. That was a huge red flag to me. Basically he was saying keep up appearances even if you have no real substance. At the risk of beating this analogy to death, to me it’s the more skilled guy who wins because the crazy guy’s facade will easily be blown once the first punch is thrown. But hey, finance is 99% keeping up appearances and acting like everything is fine when you could be bankrupt in a week.

degenerate_account