What the Hell happened to WeWork?
Almost everyone has had that boss who was a bit flaky. WeWork looked poised to do something special. And like your old boss, perhaps they thought they were going to change the world. But, often perception, dreams, and reality collide to give your boss one hell of a wake-up call. Like a morning call at 6am after you've been on a drug-fueled bender.
Alas, here's your chance to understand exactly what happened to WeWork. It might even help you catch the next grifter that wants to take some of your free investment dollars.
How did WeWork start to go so bad?
Basically, the story behind is a tale of two much money or too little experience with people managing that type of cash. Adam Newman, WeWorks young CEO, came to New York from Israel for college. He started a few different bases cheating the American dream, and he had the idea of a coworker and sweet. He hooked up with his cofounder McGill McElwee (no you can't make this up), and the two of them started a company called green desk. Eventually, it was sold. But, that would serve as the first iteration of the WeWork business model.
WeWork Meets too much Real Estate Space
Newmann and McGee's idea was Perfectly time we're sitting on an exponential amount of office space that was. WeWorks Business model gave those landlords an opportunity to fill that space. Eventually, bison and buy 2015 the company size had quadruple. It's valuation With over 23,000 customers. They were trying to sell the dream of awesome Office spaces. Young people love the idea, and valuation continued to climb. The valuation number wasn't real, but it didn't stop the company from spending money as if it were found on the ground.
An IPO in the hopper leads to its spectacular flameout
And, as you know now. Their IPO hope and dreams have been dashed.
But, if you have 10 minutes, watch the video from Bloomberg.