Markets

A Manhattan real estate tycoon predicted WeWork would run into problems

The boss of a billion-dollar real estate group predicted WeWork would run into problems. “We studied WeWork and we’re not comfortable with their business model and credit,” Paramount CEO Albert Behler said on the group’s earnings call this week, adding the coworking startup’s fall from grace “occurred a lot sooner […]
A Manhattan real estate tycoon predicted WeWork would run into problems
Markets

‘We created a monster,’ SoftBank CEO Masayoshi Son reportedly said of WeWork

Masayoshi Son, CEO of Japanese mega-investor SoftBank, told colleagues that “we created a monster” in WeWork, the Financial Times reported. SoftBank will on Wednesday impose stricter governance standards on dual-class share structures after the WeWork fiasco, the FT said. SoftBank is expected to take a multibillion dollar writedown on WeWork, […]
‘We created a monster,’ SoftBank CEO Masayoshi Son reportedly said of WeWork
Markets

Cash-strapped WeWork got an early SoftBank payment of $1.5 billion — and the board now controls Neumann’s shares

On Wednesday SoftBank paid WeWork $US1.5 billion, an earlier-than-expected financing boost for the cash-strapped company. “This financing package enables the company to accelerate the path to profitability and free cash flow generation,” new Chairman Marcelo Claure said in a statement. Adam Neumann meanwhile has been moved to a “board observer” […]
Cash-strapped WeWork got an early SoftBank payment of $1.5 billion — and the board now controls Neumann’s shares
Markets

All the details of SoftBank’s WeWork takeover: SoftBank to own 80% of WeWork, Neumann steps down, and SoftBank invests billions. The new chairman will address employees on Wednesday.

SoftBank on Tuesday night announced a deal to take over WeWork. The rescue plan, which comes weeks before WeWork was set to run out of money, includes a capital infusion and stock buyback from the Japanese investor. Marcelo Claure, SoftBank’s chief operating officer, will become executive chairman of WeWork’s board. […]
All the details of SoftBank’s WeWork takeover: SoftBank to own 80% of WeWork, Neumann steps down, and SoftBank invests billions. The new chairman will address employees on Wednesday.
Tech

Adam Neumann told staff earlier this year his family had 100% control of WeWork and even in 300 years, his descendants would be in control as ‘the moral compass of the company’

Adam Neumann told staff he planned to have his family control WeWork indefinitely at the company’s all-staff meeting in January, according to a video leaked to Business Insider. The now-ousted founder said at the company’s January all-hands meeting that he and his family control the company “100%.” He contrasted his […]
Adam Neumann told staff earlier this year his family had 100% control of WeWork and even in 300 years, his descendants would be in control as ‘the moral compass of the company’
Tech

SoftBank reportedly plans to offer $5 billion in financing to WeWork without majority control, offering an alternative to JPMorgan’s high-interest option

SoftBank is preparing to offer WeWork a $US5 billion financing deal with less restrictive terms than an earlier version under consideration, Nikkei Asian Review reported on Wednesday. JPMorgan is also working with 100 potential investors on a refinancing package with a high interest rate. WeWork will see options from both […]
SoftBank reportedly plans to offer $5 billion in financing to WeWork without majority control, offering an alternative to JPMorgan’s high-interest option
News

WeWork cofounder Adam Neumann personally invested $30 million in a startup and loaned money to its CEO. Then the CEO got fired for alleged gross misconduct.

WeWork’s former CEO Adam Neumann loaned money to a British startup boss who was later fired from his company for alleged gross misconduct, documents obtained by Business Insider show. Neumann initially invested $US30 million in UK energy technology startup Faraday Grid in January 2019, while still chief exec of the […]
WeWork cofounder Adam Neumann personally invested $30 million in a startup and loaned money to its CEO. Then the CEO got fired for alleged gross misconduct.
Tech

SoftBank’s founder is ’embarrassed and impatient’ with his investments after troubles with WeWork and Uber, and now he’s telling founders to ‘know your limit’

SoftBank founder Masayoshi Son told Nikkei Business that he is embarrassed of his investment record. Two of SoftBank’s investments, Uber and WeWork, have seen their valuations drop recently, and WeWork cancelled its planned IPO. Son says he now has been telling founders to “know your limit,” to prevent issues like […]
SoftBank’s founder is ’embarrassed and impatient’ with his investments after troubles with WeWork and Uber, and now he’s telling founders to ‘know your limit’
Markets

The man who runs the $100 billion SoftBank Vision Fund dismisses the idea that his firm values companies too high — even after Uber and WeWork have struggled to live up to extreme valuations

SoftBank Investment Advisors CEO Rajeev Misra, who oversees the $US100 billion Vision Fund, denied that the fund overvalues companies in a rare interview with the Nikkei Asian Review. Misra said the short-term price doesn’t matter if the company is successful in the long run. Softbank has come under fire after […]
The man who runs the $100 billion SoftBank Vision Fund dismisses the idea that his firm values companies too high — even after Uber and WeWork have struggled to live up to extreme valuations
Markets

WeWork’s bonds plummet to record low after company pulls its IPO

WeWork’s 7.875% notes maturing in 2025 tumbled to a record low of 86.39 cents on the dollar on Monday after the company’s latest S-1 filing said it will pull its IPO. The company’s new co-CEOs Artie Minson and Sebastain Gunningham said “We have decided to postpone our IPO to focus […]
WeWork’s bonds plummet to record low after company pulls its IPO
Markets

WeWork shelves IPO for now under new leadership

WeWork is shelving its initial public offering after a tumultuous six weeks that saw its cofounder and CEO step down. The flexible-office-space company still plans to go public in the future, its new co-CEOs said in a Monday statement. Read more WeWork news here. WeWork is postponing its initial public […]
WeWork shelves IPO for now under new leadership
Markets

WeWork is selling the company’s $60 million luxurious private jet that Adam Neumann and his family personalised and used to fly all over the world

WeWork is putting the private plane Adam Neumann used up for sale, Business Insider has learned. The company bought the luxurious Gulfstream G650 for $US60 million last year. Some employees told Business Insider that the optics of the Gulfstream upset staff members who couldn’t get promised bonuses and raises while […]
WeWork is selling the company’s $60 million luxurious private jet that Adam Neumann and his family personalised and used to fly all over the world
Markets

WeWork is reportedly in talks with SoftBank about a $1 billion lifeline

WeWork is in talks with SoftBank about a $US1 billion lifeline after shelving its IPO this month, according to the Financial Times. SoftBank, which has plowed more than $US9 billion into the shared workspace group, is considering investing the extra funds on top of $US1.5 billion it has already committed. […]
WeWork is reportedly in talks with SoftBank about a $1 billion lifeline
News

WeWork could cause a disaster for New York City’s real-estate market

Adam Neumann stepped down as WeWork’s CEO on Tuesday, citing public scrutiny after The We Company filed for an initial public offering. But despite Neumann’s antics as CEO and decision to step down, WeWork still has some serious problems with its business. WeWork’s rapid expansion and business issues mean the […]
WeWork could cause a disaster for New York City’s real-estate market
Tech

WeWork has acquired 21 startups in the last four years, from a college messaging service to a real estate investing app. Here’s everything WeWork has bought.

Coworking startup WeWork has acquired at least 21 startups since 2015, according to Pitchbook data. The single largest deal we know about is WeWork’s acquisition of a Singapore-based coworking startup for $US500 million in 2017. Several of the startups it acquired seem to fit right in with WeWork’s business model, […]
WeWork has acquired 21 startups in the last four years, from a college messaging service to a real estate investing app. Here’s everything WeWork has bought.
Markets

Adam Neumann gives up most of his voting power and steps down as WeWork’s CEO, saying intense public scrutiny of him was a ‘distraction.’ 2 execs will permanently replace him.

Adam Neumann is stepping down as WeWork’s CEO, citing intense public scrutiny that has become a distraction in running the firm. WeWork said it would name two current execs, Sebastian Gunningham and Artie Minson, as permanent co-CEOs. Minson, WeWork’s copresident and chief financial officer, joined the company in 2015 from […]
Adam Neumann gives up most of his voting power and steps down as WeWork’s CEO, saying intense public scrutiny of him was a ‘distraction.’ 2 execs will permanently replace him.
Tech

Renovation work on WeWork CEO Adam Neumann’s $10.5 million Manhattan townhome led to disputes with contractors over $1 million in alleged unpaid bills

WeWorkCEO Adam Neumann and his wife, Rebekah Neumann, battled with contractors over bills related to the renovation of their $US10.5 million Manhattan townhome. Between 2017 and 2018, four of the contractors ended up filing legal claims over alleged unpaid bills, and one even sued the couple – even as Neumann […]
Renovation work on WeWork CEO Adam Neumann’s $10.5 million Manhattan townhome led to disputes with contractors over $1 million in alleged unpaid bills
Tech

WeWork CEO Adam Neumann reportedly smoked weed with friends on a private jet to Israel — and the flight crew later found a ‘sizable chunk’ in a cereal box and recalled the plane

WeWork cofounder and CEO Adam Neumann smoked weed with friends on a Gulfstream G650 private jet to Israel last summer, The Wall Street Journal reported. The flight crew found a “sizable chunk” of marijuana “stuffed in a cereal box” on board after Neumann’s squad exited the aircraft. The jet’s concerned […]
WeWork CEO Adam Neumann reportedly smoked weed with friends on a private jet to Israel — and the flight crew later found a ‘sizable chunk’ in a cereal box and recalled the plane
Tech

WeWork CEO Adam Neumann is such a big surfing fan he led the company to invest $13 million into a startup that creates artificial waves — check out how ‘Wavegarden’ works

Before WeWork was plagued with investor concerns and a stalled initial public offering, chief executive Adam Neumann directed the company to invest in an artificial wave startup. Wavegarden offers multi-million-dollar wave installations that have been set up in three countries so far – but its only US location faced roadblocks […]
WeWork CEO Adam Neumann is such a big surfing fan he led the company to invest $13 million into a startup that creates artificial waves — check out how ‘Wavegarden’ works
Tech

WeWork is reportedly leaning toward delaying its IPO

WeWork is leaning toward delaying its initial public offering, The Wall Street Journal reported. The company won’t start its roadshow – its series of meetings with potential investors – this week as planned, The Journal reported. It will likely postpone the offering until at least October, according to the report. […]
WeWork is reportedly leaning toward delaying its IPO
Tech

The biggest backers of SoftBank’s $100 billion Vision Fund are reportedly reconsidering their investments in the second one after Uber and WeWork disappointed

Two of the biggest investors in SoftBank’s original Vision Fund are debating whether to significantly cut back on their commitments to a planned second one, Bloomberg reported. Saudi Arabia’s Public Investment Fund put $US45 billion into SoftBank’s original Vision Fund, but only plans to commit its profits from that investment […]
The biggest backers of SoftBank’s $100 billion Vision Fund are reportedly reconsidering their investments in the second one after Uber and WeWork disappointed
Tech

WeWork’s biggest outside shareholder, SoftBank, is reportedly asking for the IPO to be put on hold because investors don’t seem interested

SoftBank, WeWork’s largest outside shareholder, wants the office-space-subleasing company to shelve its embattled IPO process, which has received a chilly reception from potential investors, according to the Financial Times. It is the latest blow to WeWork, which has also reportedly cut its projected valuation to under $US20 billion – less […]
WeWork’s biggest outside shareholder, SoftBank, is reportedly asking for the IPO to be put on hold because investors don’t seem interested
Tech

WeWork reportedly hired the parents of a high-ranking exec as real estate brokers for a Miami lease, among other potential conflicts of interest

WeWork, in its public offering documents, disclosed a slew of related-party transactions involving CEO Adam Neumann, his wife, and various family members. But the company didn’t disclose a collection of deals involving the family members of other company officials, according to a report in the Wall Street Journal. The deals […]
WeWork reportedly hired the parents of a high-ranking exec as real estate brokers for a Miami lease, among other potential conflicts of interest
Tech

WeWork could cut its valuation in half to about $20 billion after intense scepticism of its business and CEO — and it might delay its IPO

WeWork’s parent company is considering a valuation of about $US20 billion for its initial public offering, according to reports from The Wall Street Journal and Bloomberg. That would amount to roughly half of WeWork’s $US47 billion valuation from its most recent private round of funding. SoftBank, one of the company’s […]
WeWork could cut its valuation in half to about $20 billion after intense scepticism of its business and CEO — and it might delay its IPO
Tech

A former Uber executive hired to clean up ousted founder Travis Kalanick’s mess has joined WeWork’s board of directors as it gears up for a massive IPO

Frances Frei has joined WeWork‘s board of directors, the company said in an updated IPO filing Wednesday. Frei, a Harvard Business School professor, was previously a senior vice president at Uber, where she was charged with turning around a toxic corporate culture. WeWork was criticised following its original IPO filings […]
A former Uber executive hired to clean up ousted founder Travis Kalanick’s mess has joined WeWork’s board of directors as it gears up for a massive IPO
Markets

Presidential hopeful Andrew Yang calls out WeWork in a tweet, saying its $47 billion valuation is ‘utterly ridiculous’

Andrew Yang, the 2020 Democratic presidential hopeful, called out WeWork in a tweet on Wednesday. He called the company’s $US47 billion valuation “utterly ridiculous,” agreeing with New York University professor Scott Galloway’s piece on Business Insider. WeWork has come under fire for multiple bizarre points uncovered in its S-1 filing […]
Presidential hopeful Andrew Yang calls out WeWork in a tweet, saying its $47 billion valuation is ‘utterly ridiculous’
Tech

NYU professor calls WeWork ‘WeWTF,’ says any Wall Street analyst who believes it’s worth over $10 billion is ‘lying, stupid, or both’

Scott Galloway, the best-selling author and well-known tech-industry pundit, is a professor of marketing at New York University’s Stern School of Business. He analysed WeWork’s S-1 filing as the company prepares for an initial public offering under its new name, The We Company. He summarized most of the major criticisms […]
NYU professor calls WeWork ‘WeWTF,’ says any Wall Street analyst who believes it’s worth over $10 billion is ‘lying, stupid, or both’
Markets

As WeWork heads for an IPO, investors ranging from asset management giant Fidelity to a pension plan for sprinkler installers are set to benefit

WeWork unveiled its filing to go public on Wednesday, with names of its biggest investors in the nearly 400-page document. The filing also included some of the specific retirement systems associated with the venture capital funds, like the 300,000-member UNITE HERE union. Other investors include asset management giant Fidelity and […]
As WeWork heads for an IPO, investors ranging from asset management giant Fidelity to a pension plan for sprinkler installers are set to benefit
Tech

Here’s who gets rich if WeWork has a successful IPO

If investors buy into WeWork’s ambitious vision when it sells shares to the public in its IPO, a handful of people and investors stand to make a killing. The IPO paperwork reveals who the company’s biggest backers are. We won’t know how much their stakes will be worth until the […]
Here’s who gets rich if WeWork has a successful IPO
Tech

WeWork is going public with an extremely weird, complicated structure

WeWork is going public with a weird corporate structure that would give tax benefits to early insiders but not to those who buy in later. WeWork confirmed in its S-1 filing that it has adopted something similar to the so-called “Up-C” structure, where investors can only buy into a holding […]
WeWork is going public with an extremely weird, complicated structure
Markets

WeWork will reportedly raise billions selling debt before its IPO

WeWork is reportedly preparing to raise between $US3 billion and $US4 billion in new debt financing before its expected initial public offering. The Wall Street Journal first reported the news on Sunday, citing sources familiar with the matter that said the debt pile could grow to as much as $US10 […]
WeWork will reportedly raise billions selling debt before its IPO
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