How WeWork Plans To Be Profitable in 2021
Finally, some fiscal responsibility
Published in
6 min readJul 14, 2020
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…