You probably have heard about the epic collapse of a once darling startup company, WeWork. However, it is in the process of going IPO via SPAC. If you are interested in putting some money into it, see below first and then decide if this speculation is still something you want to pursue.
Here's a summary that appeared in The Wall Street Journal, The We That Didn't Work at WeWork:
WeWork underwent one of the most spectacular corporate meltdowns of the decade. It aborted an initial public offering, Mr. Neumann was ousted as chief executive, the company's valuation tumbled by nearly $40 billion and Mr. Son – having never completed the $20 billion deal – saw his tech-oracle image become fodder for jokes...
The high-profile immolation of the country's most valuable startup was caused by an array of factors including loose corporate governance, loose money and a financial sector thirsty for founders promising vision and innovation.
But playing a starring role in WeWork's rise and fall was the relationship between the two entrepreneurs, Mr. Son and Mr. Neumann. The pair often relied on erratic decision making as they made highly consequential decisions with billions of dollars – decisions that ultimately paved the way for WeWork's implosion.
It was a mix of mentor and disciple, competitive rivalry, and some father-and-son dynamics – resulting in a battle of one upmanship that left both men humiliated and furious with each other, said former and current employees of WeWork and SoftBank.
Today, the company is still grappling with the hangover. Now worth $8 billion, down from $47 billion, WeWork is on track to go public, this time through a merger with a special-purpose acquisition company. It exited some leases taken on by Mr. Neumann with SoftBank's money but must still absorb an enormous amount of office space. Occupancy is at a once unthinkable 53%.
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