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‘At What Point Does Malfeasance Become Fraud?’: NYU Biz-School Professor Sc
Auto extracted Text……Former WeWork CEO wework-has-bigger-problems-than-adam-neumann.html”>Adam Neumann in 2017.
Last week, WeWork CEO and co-founder Adam Neumann was forced to step down after the company’s valuation dropped at least $30 billion in a matter of days.
We’ve had three weeks of a disaster, and people are still talking about the IPO like it’s something the company can still accomplish some day.
I don’t know that it’s illegal, but the fact that someone took out three-quarters of a billion dollars and you’re going to have 15,000 employees, I would imagine that somewhere between 1,000 and 3,000 thought they were going to be millionaires in a couple weeks, and they’re getting zero.
There’s going to be a lot of anger toward Adam Neumann.
It’s easy to say now, I remember saying, “What do you have here that’s defensible?” There’s going to be a lot of fallout here, but one of the things, there’s going to be an overdue immune reaction.
The marketplace is sort of saying that after WeWork and Uber, there’s two types of companies in the unicorn space: ones that are overvalued and ones that are just going to zero.
One is likely going to be a zero — that’s WeWork — of $11 billion.
WeWork declined in value more in 30 days — SoftBank and all these smart people had their shares on their books at $47 billion — it went to zero in 30 days.
It’s a lot of landlords who are going to incur a lot of pain because in exchange for ten-year leases, they put in huge improvements for these spaces which they won’t be able to recapture if WeWork moves out.
And you also have a lot of IPOs that will be affected, but I think that’s a good thing — Peleton’s a great company, but it’s not worth $8 billion.
It’s like the guy at Chernobyl who refused to believe what was going on was given three-quarters of a billion dollars to leave before shit got real.
It’s impossible not to tell your parents, “Let’s think about going on a family cruise together.” It’s impossible not to start thinking that you can afford that new car
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