The fortune of WeWork's founder, Adam Neumann, plummets as investors lose confidence

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However, there is nothing to sneeze, especially for someone who has spent part of his childhood on a kibbutz. Neumann moved to New York from Israel in 2001 to have fun and make a lot of money, while he put him in a speech at Baruch College, his alma mater. He then met Rebekah, his future wife, who is listed in a prospectus as co-founder, head of brand and impact manager and "strategic thinking partner".

WeWork has opened co-working spaces in over 100 cities around the world.

WeWork has opened co-working spaces in over 100 cities around the world.Credit:Bloomberg

Adrian Zamora, a company spokesman, declined to comment.

Neumann and co-founder Miguel McKelvey started WeWork after sharing an office space in Brooklyn. McKelvey, like Neumann, spent part of his childhood in a common environment: a collective in Oregon.

"We are building a capitalist kibbutz," Neumann said in a 2017 interview with the Israeli newspaper Haaretz.

He moved to New York after five years in the Israeli Navy and, in 2002, he enrolled at Baruch College, where he studied entrepreneurship and marketing. After a couple of failed product launches, including a line of women's shoes and children's trousers with knee pads, he retired to devote himself to full-time business ventures.

Rebekah Neumann studied under the Dalai Lama and "Mother Nature herself," according to a profile on the WeGrow website, a private network of elementary schools she founded. The WeGrow classes cost up to $ 48,000 for the 2020-21 school year, with a curriculum that includes yoga and meatless community lunches.

The co-founders of WeWork, Adam Neumann and Miguel McKelvey.

The co-founders of WeWork, Adam Neumann and Miguel McKelvey.Credit:Bloomberg

Since its foundation, We Co. has raised over $ 12 billion and opened offices in over 100 cities. The company – formerly known as WeWork Co. – bought the current name from Neumann and McKelvey for $ 5.9 million, one of the many agreements that has attracted attention over the years. Neumann retains control of the vote through a three-class stock structure and has also been criticized for borrowing the company's money, owning the property he owns back to the company and selling shares of capital before of the planned IPO.

The company rents space in four buildings owned by Neumann, according to the prospectus. He signed a lease for three of them on the day he got his stake and pledged to become a tenant within the following year.

Such disclosures – and the billions of dollars of losses that the company has accumulated in recent years – have increased the discomfort among investors already frustrated by the weak weak on the Silicon Valley loved ones market like Uber.

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WeWork is considering important changes in governance to mitigate these concerns, according to people with knowledge of the situation. The company has already taken some measures, such as the addition of a woman to her council and the fact that Neumann returned $ 5.9 million of partnership interest initially granted to him as compensation for the brands used in the rebranding . The company and its biggest supporter, SoftBank, are also discussing whether to delay the IPO, said people with knowledge of the talks.

Neumann probably doesn't hurt the money, even with a delay. He has already pledged part of his shares to guarantee a credit line of up to $ 500 million dollars from the subsidiaries of UBS Group AG, JPMorgan Chase & Co. and Credit Suisse Group AG, according to last month's prospectus. At the end of July, about $ 280 million was outstanding at the end of July.

Bloomberg

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