Sep 28, 2019

We(re)Work: One week, many changes

Illustration: Rebecca Zisser/Axios

It's been just a few days since WeWork fired CEO Adam Neumann, but his co-CEO replacements Artie Minson and Sebastian Gunningham have already made a number of significant changes.

Why it matters: The company still needs to raise new capital from somewhere, so turnaround speed is of the essence.

What we know

Over 20 senior executives close to Neumann have been fired, including wife Rebekah (chief brand officer), Michael Gross (vice chairman), and Chris Hill (chief product officer and CEO of WeWork Japan).

  • There also are expectations of widespread layoffs in upcoming weeks.

WeWork will seek to sell 3 non-core businesses that it paid more than $500 million to acquire over the past 2 years: Conductor, Meetup and Managed by Q.

  • It is unclear if the company's WeGrow elementary school will continue, although the company is committed to finishing out at least this school year.

It also will sell a private Gulfstream jet for which it paid $60 million last year.

The company is leaning toward pulling its IPO filing, although hasn't so far as to maintain optionality. It currently has around $2 billion of cash on hand and is owed another $1.5 billion next year from shareholder SoftBank, with reports that SoftBank may increase its investment if it can change the original deal terms.

Go deeper

WeWork will withdraw IPO filing

Photo: Michael Brochstein/SOPA Images/LightRocket via Getty Images

WeWork announced Monday that it would formally pull its IPO filing after a tumultuous series of weeks saw its valuation plummet and the departure of CEO Adam Neumann, per CNBC.

The big picture, via Axios' Dan Primack: The company's new CEOs, Artie Minson and Sebastian Gunningham, have already made a variety of moves to shore up the company's finances. It currently has around $2 billion of cash on hand and is owed another $1.5 billion next year from shareholder SoftBank, with reports that SoftBank may increase its investment if it can change the original deal terms.

Go deeper ... We(re)Work: One week, many changes

Keep ReadingArrowSep 30, 2019

Scoop: Adam Neumann will determine WeWork's fate

Photo: Michael Kovac/Getty Images for WeWork

Japanese investment firm SoftBank will pay former WeWork CEO and current non-executive chairman Adam Neumann around $200 million to leave the board of directors, give up his voting shares and support SoftBank's takeover, according to multiple sources familiar with the situation.

Why it matters: It's a dramatic — and legally dubious — development in a saga that has seen the embattled company plunge from a $47 billion valuation to below $8 billion. SoftBank's board will vote on Tuesday, but that's irrelevant, since Neumann's 10 votes per share are the only ones that matter. It's unclear if Neumann's successors Sebastian Gunningham and Artie Minson will stay on as co-CEOs.

Go deeperArrowOct 21, 2019

How SoftBank plans to save WeWork

Illustration: Aïda Amer/Axios

WeWork's board this morning will vote on whether to accept a rescue package from SoftBank or one arranged by JPMorgan.

The big picture: SoftBank's package includes a massive bribe... errr, I mean golden parachute... errr, I mean "consulting contract" for Neumann.

Go deeperArrowOct 22, 2019