Foundering WeWork Part 6: IPO -- Just Kidding
Jul 23, 2020
WeWork's failed IPO and the dramatic downfall of the company are explored in this episode, delving into the questionable actions of CEO Adam Neumann, the power struggle within SoftBank, and the controversial decisions leading up to the IPO flop.
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From Fancy Breakfasts To Gray Avocado
- Andy loved WeWork's free Monday breakfasts and fancy perks early on.
- The food quality declined abruptly to stale bread and gray avocado, reflecting company cost cuts.
IPO Was Plan B After Cash Crisis
- WeWork was losing roughly two dollars for every dollar of revenue in 2018 and burning cash fast.
- Management saw an IPO as plan B after SoftBank funding expectations collapsed.
Personal Trust Drove Big Investments
- Masayoshi Son trusted Adam Neumann personally and repeatedly funded him despite internal SoftBank concern.
- That personal trust blinded critics inside SoftBank who warned the investment was too large.