blinki.st/c87019b62fd6?b…
Today's Blinkist summary is about the Cult of We by @eliotwb and @maureenmfarrell
Today's Blinkist summary is about the Cult of We by @eliotwb and @maureenmfarrell
blinki.st/c87019b62fd6?b…
The story of WeWork is that of a "glorified real estate company" that was selling itself as a tech company/startup. It all came crashing down in 2019.
The story of WeWork is that of a "glorified real estate company" that was selling itself as a tech company/startup. It all came crashing down in 2019.
blinki.st/c87019b62fd6?b…
It all starts back in 2006 when Adam Neumann met an architect called Miguel McKelvey. Neumann needed a space for a baby clothes business. They ended up in the same building and they started collaborating on a business of renting ready-to-use office space.
It all starts back in 2006 when Adam Neumann met an architect called Miguel McKelvey. Neumann needed a space for a baby clothes business. They ended up in the same building and they started collaborating on a business of renting ready-to-use office space.
The first company was GreenDesk and they sold out in 2009. They then convinced Joel Schreiber to invest in a new company called WeWork.
blinki.st/c87019b62fd6?b…
Neumann positioned the company as a tech start up to maximise the hype (and money that ppl we willing to invest).
It sounds like he was a slick salesman. He had slides predicting revenue to increase from $73 mil to $2.8 billion from 2014 to 2018. Wow!
Neumann positioned the company as a tech start up to maximise the hype (and money that ppl we willing to invest).
It sounds like he was a slick salesman. He had slides predicting revenue to increase from $73 mil to $2.8 billion from 2014 to 2018. Wow!
blinki.st/c87019b62fd6?b…
McKelvey cashed in his profits, and Neumann continued the work. The company was still "losing a million dollars a day" after 7 years.
Neumann had a "triangle plan" which he used to entice Masayoshi Son, the CEO of Softbank Group in Japan.
McKelvey cashed in his profits, and Neumann continued the work. The company was still "losing a million dollars a day" after 7 years.
Neumann had a "triangle plan" which he used to entice Masayoshi Son, the CEO of Softbank Group in Japan.
Softbank valued WeWork at $47 billion and invested $10 billion, with promises of a further $10 billion.
Rather than a "triangle plan", perhaps house of cards or pyramid might have been more apt.
Rather than a "triangle plan", perhaps house of cards or pyramid might have been more apt.
blinki.st/c87019b62fd6?b…
WeWork tried to expand into other areas. They acquired other companies and spending was exorbitant. "In less than two years, WeWork had depleted $3 billion of Softbank's money".
That's $3 000 000 000.
WeWork tried to expand into other areas. They acquired other companies and spending was exorbitant. "In less than two years, WeWork had depleted $3 billion of Softbank's money".
That's $3 000 000 000.
blinki.st/c87019b62fd6?b…
There was a large staff retreat in 2019 where Neumann announced he thought the company was worth $100 billion.
Softbank's money was partly provided by the Saudi government, and they grew wary.
4 months after the summit, Neumann announced an IPO.
There was a large staff retreat in 2019 where Neumann announced he thought the company was worth $100 billion.
Softbank's money was partly provided by the Saudi government, and they grew wary.
4 months after the summit, Neumann announced an IPO.
blinki.st/c87019b62fd6?b…
"by 2019 Neumann boasted a personal net worth of $10 billion...He developed a reputation for partying hard on his private jets – and traveling everywhere with a trail of aides, including a hairdresser and a surf instructor."
Eggregious is the word.
"by 2019 Neumann boasted a personal net worth of $10 billion...He developed a reputation for partying hard on his private jets – and traveling everywhere with a trail of aides, including a hairdresser and a surf instructor."
Eggregious is the word.
Before the IPO document was released, the comms department put together a list of potentially damaging details about the company. It was 20 pages long.
The IPO documents were published on 19 Aug 2019. Two days later, Neumann stepped down with a $1 billion severance package.
The IPO documents were published on 19 Aug 2019. Two days later, Neumann stepped down with a $1 billion severance package.
news.com.au/finance/money/…
And lo and behold, in the news today, it looks like Neumann remains unrepentant.
#capitalism
And lo and behold, in the news today, it looks like Neumann remains unrepentant.
#capitalism
And this whole saga reminds me how the western capitalist system is set up to allow people to get away with this type of scam. *end rant*
https://twitter.com/DrAndrewHuang/status/1455067653949714434?s=20
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