Feb 3, 2020 - Economy & Business

WeWork names real estate veteran Sandeep Mathrani as new CEO

Photo: Alex Tai/SOPA Images/LightRocket via Getty Images

WeWork has named real-estate-industry veteran Sandeep Mathrani as its new CEO, the Wall Street Journal reports.

Why it matters: The hire is the company's first significant step since its co-founder Adam Neumann stepped down from the position last September.

  • WeWork’s valuation plummeted more than 80% since 2019, forcing it to seek lifeline from its parent company SoftBank Group, according to the WSJ.

Our thought bubble, via Axios' Dan Primack: This is WeWork telling the world that it's a real estate company, not a tech company seeking "to elevate the world's consciousness."

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SoftBank executive muddles details of ousted WeWork CEO's exit package

Former WeWork CEO Adam Neumann. Photo: Michael Kovac/Getty Images for WeWork

Marcelo Claure, a SoftBank executive who's currently doubling as WeWork's executive chairman, told CNBC on Tuesday that people misunderstand ousted CEO Adam Neumann's exit package: "To say that he has walked away with over a billion dollars is totally false."

Why it matters: Claure intentionally muddled the present and past tense. Neumann indeed will walk away with over $1 billion, he just hasn't done so yet because SoftBank's tender offer for WeWork shares hasn't closed. Neumann, currently living in Israel, is able to tender up to $970 million worth of shares. That's on top of the nearly $200 million he already received to give up his voting rights, and a $500 million credit line to repay existing loans.

Go deeper: WeWork's Adam Neumann to step down as CEO

Activist investor Elliott Management knocks on SoftBank's gates

Photo Illustration: Sarah Grillo/Axios. Photo: David A. Grogan/CNBC/NBCU Photo Bank/NBCUniversal via Getty Images

Activist investor Elliott Management has acquired around a $2.5 billion stake in SoftBank Group, saying the market "significantly undervalues" the Japanese group's assets.

The state of play: So far the relationship appears to be friendly, but Elliott isn't shy about getting into the mud if that's where it feels the most profit lies.

Inside the fall of SoftBank-backed startup Brandless

Illustration: Aïda Amer/Axios

Brandless, the SoftBank-backed e-commerce startup that originally sold all of its products for $3, confirmed yesterday that it will shut down.

Behind the scenes: Sources say Brandless had sought a buyer, via a bank-led process, but was unable to garner any bids.