The office sharing start-up was once valued at $47 billion.
In the end, not even SoftBank CEO Masayoshi Son could save WeWork from a combination of terrible decision-making, overpriced leases, and the lingering economic effects of Covid-19.
WeWork’s story is long and complex. Founded in 2010 by the entrepreneur Adam Neumann, the company at one point raised capital at a valuation of $47 billion. But Neumann’s wild-eyed optimism about the company was never fulfilled. The company’s first attempt at an initial public offering was withdrawn in 2019, amid investor concerns about mounting losses, a rich valuation, and allegations of weak corporate governance practices.
WeWork finally reached the public market in October 2021, in the middle of the pandemic, via a merger with the special purpose acquisition company called BowX Acquisition Corp. It was initially valued at $9 billion. For a brief moment, it looked like a surprise win for SoftBank. Now creditors, under the protection of the bankruptcy courts, will try to figure out if WeWork’s underlying business—short-term office rentals—can be salvaged. It won’t be the first time the company’s debt holders have tried to solve the WeWork problem.
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