Forbes just revoked Adam Neumann’s billionaire status and lowered its estimate of his personal net worth to $600 million — which means his purported net worth has plummeted by $3.5 billion in just 7 months

Former WeWork CEO Adam Neumann founded WeWork in 2010 alongside his now-wife Rebekah Neumann and Miguel McKelvey. Photo by Jackal Pan/Visual China Group via Getty Images

Adam Neumann is no longer a billionaire, Forbes now estimates.

The former WeWork CEO’s net worth has plummeted to $US600 million, the magazine estimates, paralleling the plunging valuation of his co-working empire following the company’s up-and-down IPO adventure that saw the company whipsaw from a $US47 billion valuation to talk of bankruptcy in just 6 weeks.Forbes’ Samantha Sharf also reported that Neumann’s cofounder, Miguel McKelvey, has also lost his billionaire status.

The $US3.5 billion drop in Neumann’s personal net worth was the result of the declining value of Neumann’s 18% stake in WeWork,Forbes reported. WeWork was valued at $US47 billion in January following an investment from Japanese investment firm Softbank. However, the company reportedly sought a valuation as low as $US10 billion in September as public scrutiny over its steep losses and leadership structure threatened its IPO. Forbes now estimates that the company is worth “at most $US2.8 billion.”

A representative for Neumann declined Business Insider’s request for comment on whether Neumann’s net worth had fallen below $US1 billion.

The Forbes calculation of Neumann’s net worth includes:

  • $US504 million stake in WeWork, and
  • $US500 million he profited from stock sales,
  • minus $US380 million in debt disclosed in WeWork’s S1 filing.

Read more:
The WeWork IPO fiasco of 2019, explained in 30 seconds

Forbes does not believe that either Neumann or McKelvey – who the publication says is now worth $US400 million – will likely rejoin the three comma club.

Neumann founded WeWork in 2010 alongside his now-wife Rebekah Neumann and Miguel McKelvey. Concern from potential investors over the company’s finances and corporate governance issues pushed Neumann to resign as WeWork’s CEO on September 24.

Under Neumann’s leadership, the company was plagued by a party culture that included alcohol-fuelled company retreats and little work-life balance, Business Insider’s Meghan Morris and Julie Bort previously reported.

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Read the full report from Forbes >>