WeWork Part 6: IPO -- Just Kidding

07/23/20 • 41 min

2 Listeners

WeWork had spent nine years chasing lightning-fast growth, burning billions of dollars, and expanding around the world. In 2019, the company reached a turning point: WeWork needed even more cash, and Adam Neumann decided to take his company public with a massive IPO. But suddenly, in the span of a few weeks, his plan crashed spectacularly. The almost-IPO flopped and WeWork became a laughingstock. In this episode, reporter Ellen Huet asks: How did the company's fortune flip so fast, and why didn't they see it coming?

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WeWork Part 7: In the End, There Was Adam

After WeWork's failed IPO, thousands of employees were laid off and the company teetered on the brink of collapse. Meanwhile, ousted CEO Adam Neumann flew to Israel with a generous exit package in hand. In this final episode of Foundering, reporter Ellen Huet surveys the wreckage of WeWork. Adam's executives and employees were asking themselves: Did Adam ever really believe in the values he preached? And what lessons will the world draw from WeWork's crash?

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Foundering - WeWork Part 6: IPO -- Just Kidding

Transcript

Speaker 100:00:00.080

A couple of years ago, Andy's Alevski needed an office. He works in urban planning and he lived in Boston at the time, so he rented a space from we Work, and he was really impressed by their perks. One of the most exciting things was Monday mornings because they had free breakfast, and I remember one of my first weeks. It was like egg and cheese breakfast sandwiches on a dancy bagel, and it was so good. He wasn't so much into the free beer, but t

WeWork Part 6: IPO -- Just Kidding Top Questions Answered

How did SoftBank save WeWork from bankruptcy?

SoftBank provided a cash infusion to WeWork, preventing it from going bankrupt.

What was the new valuation of WeWork after the deal with SoftBank?

The new valuation of WeWork was $8 billion, significantly lower than its previous valuation of $100 billion.

Who owns the majority of WeWork after the deal with SoftBank?

After the deal with SoftBank, SoftBank now owns 80% of WeWork.

How much was Adam Newman's exit package worth?

Adam Newman's exit package was worth $1.7 billion.

What led to Adam Newman becoming a joke and people dressing up as him for Halloween?

The WeWork IPO disaster led to Adam Newman becoming a joke, as people dressed up as him for Halloween, due to the controversies and failures surrounding the IPO.

What did SoftBank's CEO publicly admit about trusting Adam Newman?

SoftBank's CEO, Masayoshi Son, publicly admitted his mistake in trusting Adam Newman and regretted ignoring his flaws.

Who was blamed for the WeWork IPO failure?

Both Adam Newman and the banks/investors were blamed for the failed IPO.

What were some of the problems revealed in WeWork's S-1 document?

The S-1 document revealed huge losses, conflicts of interest, nepotism, and questionable actions by Adam Newman, among other problems within the company.