WeWork took a decent idea and turned it into a ridiculous one. Renting empty office space and then subleasing it can work if done carefully, a word lost on founder Adam Neumann and his biggest backer, SoftBank Group boss Masayoshi Son, writes rob_cyran
boss Masayoshi Son. Although the company is now conceding it might not be able to continue as a “going concern,” it at least did some of heavy lifting for a more conservative publicly listed rival., released on Tuesday, were dreadful yet again. Occupancy declined and WeWork burned through another $300 million. Its liquidity dipped to $680 million, about a third of which is cash. Daniel Hurwitz, the chairman who also was spearheading the search for a new CEO,.
2 billion debt-for-equity swap in May. Valued at $47 billion in a private funding round just four years ago, its market capitalization is less than $500 million today.. It was built largely on hype and being valued more like technology than real estate. Multitasking on everything from schools to wave pools were a distraction. WeWork agreed to take over loads of space when revenue was doubling each year and prices were far higher. Now it’s sitting on $2.
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