Thread by @profgalloway

You haven’t even begun to see the anger that will be unleashed on Adam Neumann. He has 15,000 people right now who are stuck cleaning up. They feel like circus clowns shovelling the shit. He has taken $750M & left a toxic waste cleanup.

interview @nymag
nymag.com/intelligencer/…

Adam Neumann came in, smoked his own supply, and walked out with three-quarters of a billion dollars about the time that people in hazmat suits showed up.

SoftBank is the only firm in the world that will put money into this thing right now. They either have to go back to their limiteds and say, “We’re probably putting good money after bad,” and create an argument for why there’s still value there, or they have to go bankrupt.

#WeWork is now a distressed asset that requires immediate restructuring. They have 15,000 employees. I don’t see any path that doesn’t involve 5,000 to 10,000 layoffs in the next 60 days.

The first thing Art & Sebastian did was they sold the $60 million plane that the board bought or approved. Either Adam hadn’t told them about the plane or they approved a $60 million plane. At what point does malfeasance become fraud?

Adam Neumann fired? He was liberated. This guy just played this perfectly. Could you imagine what his life would be like right now, if he was still CEO? Showing up every day to an office where he had sold $750M & everybody else was trying to figure out how to pay their rent.

The bigger story here is SoftBank. WeWork is the opportunistic infection that is going to kill the Vision One Fund. It’s beyond repair. Between Uber and WeWork, you have $20 billion of the hundred billion.

#Uber, the consensual hallucination continues. They have to maintain the illusion of growth. Without the growth story, they’re worth 20 percent of what they’re worth now. I think that chops off 50 to 80 percent in the next 25 months. #WeWork can start from zero.

The real toll here is on the employees. $47 billion? Several thousand people were going to be millionaires. It’s impossible not to count your money 30 days out from an IPO. It’s impossible not to tell your parents, “Let’s think about going on a family cruise together.”