All posts tagged: WeWork

Adam Neumann’s Bid to Buy WeWork Failed. Will He Now Try to Compete With It?

Adam Neumann’s Bid to Buy WeWork Failed. Will He Now Try to Compete With It?

Published by skeptic

Adam Neumann’s bid to buy back WeWork essentially ended this week. A bankruptcy court on Monday approved a deal that gets WeWork out of debt. It could conclude its restructuring and leave bankruptcy by late May following a vote on the deal, thanks to $450 million in financing provided largely by WeWork creditor and real estate technology provider Yardi Systems. That deal would eliminate $4 billion in debt and also shut the door on Neumann. He’s been persistent in his efforts to buy the company he cofounded but was later forced out of by investors, offering more than $500 million and following up with promises to beat any other offer by 10 percent. A spokesperson for Neumann did not provide comment about whether he will continue to pursue a purchase of WeWork, or what this meant for the future of Flow, Neumann’s new company that aims to transform the residential rental experience. “After misleading the court for weeks, WeWork finally admitted it is trying to sell the company to a group led by Yardi for …

WeWork poised to shut more London sites as cost-cutting continues

WeWork poised to shut more London sites as cost-cutting continues

Published by Sam

There are now 30 London WeWork offices advertised on the company’s website, down from the 35 advertised a month ago after a number of other locations including those in Bishopsgate and Clerkenwell were also removed. At its peak, the firm had at least 50 different sites in the capital. Some customers at closing sites have been offered the option to relocate to those which remain open. Source link

Adam Neumann, Trying Stand-Up Comedy On for Size, Is Attempting to Buy Back WeWork

Adam Neumann, Trying Stand-Up Comedy On for Size, Is Attempting to Buy Back WeWork

Published by skeptic

Want to hear a joke? Guy started a company—let’s call it WeWork—and raised an insane amount of money, valuing it a colossal $47 billion. While running the company, he reportedly did things like: Smoked so much pot on the corporate jet that the crew had to put on oxygen masks in order to breathe Threw company retreats called “Summer Camp” where, on at least one occasion, he took “psychedelic mushrooms on the first night of camp” and carried around “a water gun filled with vodka” Laid off employees to cut costs and then immediately had a member of Run-DMC enter the room to entertain the remaining staff, who were treated to tequila shots and toasts Empowered his wife to fire people within minutes of meeting them because she “didn’t like their energy“ Trademarked the word We, and made the company pay him $5.9 million to license it* Borrowed money from the company as it paid him rent Told people that, while he once had ambitions to become the prime minister of Israel, his new plan …

EU faces £370m bill after US firm goes bust, saddling it with post-Brexit white elephant | Politics | News

EU faces £370m bill after US firm goes bust, saddling it with post-Brexit white elephant | Politics | News

Published by skeptic

The European Union is facing the prospect of stumping up £27million for a huge office bloc in London vacated after Brexit, confidential papers have indicated, with the bill having the potential to rise to an eye-watering £370million. The 280,000-square-foot building, 30 Churchill Place in Canary Wharf, was previously used by the European Medicines Agency (EMA). It was leased to US office rental business WeWork after Britain quit the EU – but the future is unclear after the company filed for bankruptcy in November. The EMA signed a 25-year lease worth £500million for the property in 2011 – five years before the pivotal referendum. As a result, it relocated 900 staff to Amsterdam, and after an unsuccessful High Court claim that Brexit had “frustrated” the lease agreement, struck a deal with WeWork to sublet 10 floors of office space in 2019. However, a document circulated to the European Parliament’s budget committee and seen by The Daily Telegraph said the UK branch of WeWork would soon stop paying rent on the building. If it stays empty for …

The dizzying rise, and even more vertiginous fall, of WeWork | WeWork

Published by Sam

WeWork’s rapid rise transformed it into one of the world’s most feted start-ups, valued at $47bn in 2019. Its fall has been faster. Just four years after clinching that peak valuation, the business has filed for bankruptcy. Dressed in the cloak of a technology company, WeWork turned out to be an office rental business – one that was undone by problems of its own making and finally by forces beyond its control. During WeWork’s ascent, it spent heavily to acquire a mass of long-term leases in some of the world’s most expensive real estate markets. These commercial properties were then subdivided into smaller spaces for tenants, usually on a short-term basis. But its pitch to customers was more than cheap desks and tech. It sought to present itself at the heart of myriad utopian ideals, in pursuit of a “mission” to “elevate the world’s consciousness”. After WeWork announced its bankruptcy filing on Monday, the co-founder Adam Neumann said in a statement that the move was “disappointing”. He said that since he had been sidelined from …

WeWork, once worth billion, files for bankruptcy

WeWork, once worth $47 billion, files for bankruptcy

Published by skeptic

Flexible-office-space firm WeWork has filed for Chapter 11 bankruptcy protection, a stunning change in fortune for the once high-flying startup co-founded by Adam Neumann and bankrolled by SoftBank. The New York-based firm has listed both assets and liabilities in the range of $10 billion to $50 billion in its petition filed in a New Jersey federal court. Its bankruptcy filing is limited to locations in the U.S. and Canada, it said. WeWork’s initial public offering faced setbacks in 2019 due to concerns over losses and governance, leading to the withdrawal of its IPO and the exit of chief executive Neumann. Neumann’s departure led to a costly settlement with WeWork and SoftBank in 2021. The company eventually went public via a SPAC merger, valuing it at $9 billion, and forecasted $2 billion in cash operating profit by 2024. WeWork restructured its balance sheet this year, reducing debt by $1.5 billion and delaying debt maturities to 2027. Despite these efforts, the firm’s market value has plummeted to less than $50 million, and bankruptcy may lead to the cancellation …

WeWork co-founder says anticipated bankruptcy filing ‘disappointing’ | WeWork

Published by Sam

The WeWork co-founder Adam Neumann described reports the shared office provider is preparing for bankruptcy as “disappointing” after trading of its shares was suspended. Neumann, who built the business into one of the world’s most highly-valued private companies, left four years ago in the wake of a botched bid to take it public, and concern over his management style. Watching WeWork struggle has been “challenging”, Neumann said on Monday, expressing confidence that it could “emerge successfully” from a reorganization. Trading in the struggling company’s stock was halted ahead of the opening bell on the New York stock exchange. WeWork, which said last week the company does not comment on speculation after the Wall Street Journal reported it was planning to file for Chapter 11 bankruptcy protection, did not respond to a request for comment. Adam Neumann in 2017. Photograph: Eduardo Muñoz/Reuters Neumann built WeWork into a feted start-up, valued at $47bn at its peak on the private market as he pitched it as a technology company, rather than a traditional real estate enterprise. But questions …

Don’t be surprised if WeWork files for bankruptcy

Don’t be surprised if WeWork files for bankruptcy

Published by skeptic

WeWork could file for bankruptcy as early as next week, according to Reuters and the Wall Street Journal. Frankly, we are not surprised at this result for the former venture darling. WeWork’s shares were down 49.7% in early morning trading on Wednesday, bringing its market capitalization to just $61 million. That’s a ludicrous drop considering this company raised more than $7.09 billion in equity capital while private. The Exchange explores startups, markets and money. Read it every morning on TechCrunch+ or get The Exchange newsletter every Saturday. In August, the company expressed doubts about its ability to continue as a going concern, which is business-speak for “the wheels are coming off this damn car and it’s not looking good.” And in October, WeWork paused certain debt payments and later negotiated a little more time for itself. Last month, WeWork missed interest payments to its bondholders and was granted 30 days to make them, according to a securities filing. Then this Monday, the company said it had begun discussions with “certain stakeholders in its capital structure” such …

WeWork reportedly on the verge of filing bankruptcy, stock plummets

WeWork reportedly on the verge of filing bankruptcy, stock plummets

Published by skeptic

WeWork is on the verge of filing for Chapter 11 bankruptcy in New Jersey, according to sources cited by The Wall Street Journal. If WeWork does indeed file, it shouldn’t come as a shock to close followers of the flexible workspace provider. WeWork warned in August in its second-quarter earnings that “substantial doubt exists about the company’s ability to continue as a going concern.” The company has faced a number of challenges for years as demand for its co-working spaces has steadily declined over time. Those troubles compounded during the COVID pandemic when companies abandoned office space and employees began working remotely. Even as some companies have returned to the office, the appetite for WeWork space didn’t rebound to those pre-pandemic days. Earlier this month, WeWork missed interest payments to its bondholders, and was granted 30 days to come up with those payments, according to a securities filing. On October 30, WeWork said it had begun discussions with “certain stakeholders in its capital structure” such as SoftBank and Goldman Sachs about improving its balance sheet as it …

WeWork fires back at competitor Codi with cease and desist

WeWork fires back at competitor Codi with cease and desist

Published by skeptic

WeWork has sent a cease and desist letter to rival Codi in response to the startup’s recent marketing campaign it dubs “WeWont,” TechCrunch has exclusively learned. In the letter, viewed by TechCrunch, WeWork’s Chief Legal Officer Pam Swidler cited “unauthorized use and misappropriation of WeWork’s intellectual property, false advertising and Tortious interference with WeWork’s contractual relations with its member companies.” Codi, which raised $16 million in a round led by Andreessen Horowitz (a16z) in September 2022, set up booths outside WeWork offices in New York and San Francisco informing companies that their space might be shutting down and offering them to sign on with its rival instead. Codi also set up a “WeWork Relief Fund” offering those that might be affected by any potential WeWork closures discounted office space with Codi. Once valued as high as $47 billion, WeWork has faced challenges with a model that involved committing to buying or signing long-term leases in buildings and then not having enough demand from people or businesses to lease or sublease its space. WeWork not only …