Uploaded byAvik Munshi
WeWork Corporate Governance
The document details the history and challenges faced by WeWork, including its rapid growth, a series of significant funding rounds, and eventual IPO attempts culminating in a drastic valuation drop. It outlines the corporate governance failures that led to the removal of founder Adam Neumann and SoftBank's bail-out. Highlighted are the pros and cons of WeWork's expansion strategy, alongside governance issues that raised investor concerns.
![[Extract] Study The We Company: is real estate a disruptable industry?](https://cdn.slidesharecdn.com/ss_thumbnails/weworkteaserv1-191107123904-thumbnail.jpg?width=640&height=640&fit=bounds)
WeWork Corporate Governance
- 1. group04 wework corporategovernanceðics 06th july 2022 imagesource: P. L. on Unsplash group 04 Vaibhav Gupta (2214021) Pankaj Jindal (2214023) Avik Munshi (2214042) Sivapriva CS (2214068) Venkata Anish (2214071)
- 2. group04 wework “our mission isto elevate world’s “consciousness.” AdamNeumann FounderCEO&Chairman WeWork image source: bloomberg
- 3. 528 office locations 111 cities worldwide 527,000 subscribers globally image source: KamalKant Kosariya on Unsplash
- 4. group04 wework the timeline 2010 Oct 2011Jul 2012 May 2013 Feb 2014 Dec 2014 Jul 2015 Jan 2016 Oct 2016 WeWork opened its 1st office in NYC DAG Ventures invested $1 million First VC Investment MassMutual, Benchmark, Fidelity invested $17 million Series A Undisclosed $40 million Series B JPMorgan, Harvard, Benchmark invested $150 million Series C T Rowe, Wellington, Goldman Sachs invested $355 million Series D Fidelity invested $434 million Series E Masayoshi Son & Adam Neumann shared the stage at Startup India Event Legend Holdings, JANVEST Capital, Hony Capital invested $690 million Series F Aug 2017 2018 Jan 2019 Aug 2019 Sep 2019 Sep 2019 Oct 2019 Oct 2021 July 2022 Softbank invested $4.4 billion (Vision Fund) WeWork became New York’s largest private landlord Softbank invested another $2 billion @ valuation $47 billion WeWork filed its S-1 document (IPO prospectus) IPO halted & WeWork cut its valuation to $10 billion The Board removed its CEO Adam Neumann Softbank takes control & bailed out the co. with $5 billion financing WeWork gets listed on NYSE @ $9.5 billion valuation Stock trading at $5.00 against $11.78 on its debut
- 5. group04 wework source: Redd onUnsplash pros cons raisecapitalbeyond venturecapital disclosureofsensitive information thehurdlestogoingpublic… reducedebt-income rationwithequityfunds provideemployeestock options publicity&elevationof brandperception potentialofvaluationhit fromreducedriskappetite stricter tocompliance& governancenorms strategicchallengesand lossoffocus
- 6. group04 wework source: NASA onUnsplash growth& expansion bringtechin officespace funding driven cashupontail windsofVCs overambitious targets lurethe investors strategyovertheyears..
- 7. group04 wework “our mission isto elevate world’s “consciousness.” AdamNeumann FounderCEO&Chairman WeWork image source: bloomberg
- 8. group04 wework source: Güner DeliağaŞahiner on Unsplash “hear no evil, see no evil, speak no “evil.” BuddhistProverb Originsunknown “defeatedallpurposesoftheboard “ineverypossiblemanner “whilstdecisionsweremade “unanimously.”
- 9. group04 wework source: 愚木混株 cdd20on Unsplash p–p, p–a, problems superseding personal interests breachof duecare &loyalty unwarranted restructuring forceocontrol relatedparty transactions tocashgains failureto disclose correctly witheverytrickinthebook…
- 10. group04 wework image source: Harvard “Ihave stayed silent too long.” MarkSchwartz BoardMember WeWork
- 11. group04 wework source: Güner DeliağaŞahiner on Unsplash source: Gareth Harrison on Unsplash “IPObroughtthetipping point,asallred “flagsbecameflashinglights!” checksbeforetheIPO… clean& control concrete roadmap investor confidence investor network timelinefor profitability opportunistic IPOtiming
- 12. group04 wework “actions speak louderthan words.” AncientProverb …
- 13. $2.35 billions revenue 3,275 office locations $185 millions op.profit image source: JonathanKemper on Unsplash $1.82 billions revenue 425 office locations $1,691 millions op.loss source: Regus Annual Report wework Regus
- 14. group04 wework image source: fortune “Ioverestimated Neumann’s good “side, turned a blind eye to things like “corporate governance.” MasayoshiSon Founder&Director SoftBank
- 15. group04 wework source: 愚木混株 cdd20on Unsplash wasitdeceptionordelusion… valuation bubble& delusion free-handto theceofrom Mr.Son no? godsyndrome &invincible attitude optimism& confirmation biases suppress &eliminate disagreements
- 16. group04 wework group 04 Vaibhav Gupta(2214021) Pankaj Jindal (2214023) Avik Munshi (2214042) Sivapriva CS (2214068) Venkat Anish (2214071) thank you image source: Brandon Hooper on Unsplash