How WeWork Plans To Be Profitable in 2021

Finally, some fiscal responsibility

Photo adapted from Morning Brew on Unsplash

The Rise and Fall of a Star

By now we’re all pretty familiar with WeWork’s infamous fall from near-IPO stardom. But for context, let’s recap real quick:

• WeWork raises money. A LOT of money.
• Then more.
• Then SoftBank comes in with even more.
• And more (SoftBank’s investments in WeWork total $10 billion).
• WeWork eventually reaches a potential IPO valuation upwards of $96 billion, though most estimates put it at $47 billion.
• WeWork files for IPO; public scrutiny ensues. Their S-1 raises questions. Big questions. Questions like, “How can a company that loses $219,000 every hour be worth so much, or anything at all?” And, “What is that line item for?”
• Controversy occurs within leadership due to shady, potentially self-serving deals (like the founder licensing the name “We Company” to WeWork for $5.9 million).
• WeWork Founder, Adam Neumann, steps down as CEO.
• IPO filing is postponed. Then canceled.
• WeWork valuation drops. A LOT.
• Then more.
• When the dust settles, “The We…