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This is how the WeWork story ends—for now. Meanwhile, the company is so cash-poor that it cannot afford to pay the severances of the 4, workers it intends to cut. Neumann spent several years of his childhood living on Kibbutz Nir Am, a communitarian settlement near the Gaza Strip.
And he has spent much of the rest of his life telling people about it. He told Haaretz that his kibbutz upbringing molded his vision of WeWork. Derek Thompson: WeWork and the great unicorn delusion. The most egregious example might be from earlier this year. In January, WeWork announced that it would change its name to the We Company to reflect the fact that its ambitions had grown from office-sharing to every facet of the collective human experience.
But the name We Company had already been trademarked—by Neumann. Even though Neumann was eventually goaded into giving back the fee, this gambit was ludicrous, audacious—and telling. Corporate renaming falls squarely in the job description of the founder and chief executive. It is not unusual for founders of billion-dollar enterprises to get rich. Annie Lowrey: Curse of the cult of the founder. In , Neumann tried to buy a small stake in a Chicago building that was in talks to lease space to WeWork.
The board pushed back against Neumann, pointing out that it was a conflict of interest for Neumann to stand on both sides of a lease agreement. The next year, Neumann gained control of WeWork and proceeded with his plan of buying up several properties to lease back to his company for millions of dollars. In documents filed with the Securities and Exchange Commission in anticipation of a public offering, WeWork announced that the company had lease agreements with four buildings in which Neumann had an ownership interest.
In , Neumann made tens of millions of dollars selling shares during an investment round. As Neumann was becoming fantastically rich—by running WeWork, by buying stakes in buildings that he could urge WeWork to lease, and by selling WeWork stock for hundreds of millions of dollars—his tastes grew dear.
Net worth and self-admiration increased in lockstep. By , Neumann was telling friends that he was intent on becoming the first trillionaire. But he can find solace in suddenly becoming one of the richest people on the planet. On Tuesday, Softbank offered to pay him a king-size ransom in exchange for wresting control of the company. Leave a comment Steph Sarkodie pinned post 5 Jan at am. His resolution by dani wyatt. Thank you!. Ro Cm pinned post 5 Jan at am.
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