Is WeWork Still In Business?

Is WeWork Still In Business?

Real Estate

The WeWork S1 according to NYU Professor Scott Galloway “felt more like a novel written by someone who was shrooming, than an S1.”

It doesn’t appear as thought WeWork can survive bankruptcy for much longer.

They burn $100 to $200 million a quarter it appears on their financial statements. However, their net tangible asset burn appears even greater. Over the last 12 months over $1.4 billion evaporated from their balance sheet, see: WeWork Inc. (WE) Balance Sheet – Yahoo Finance

Their current assets have halved over the last 12 months as well.

What is the history?

WeWork is a company that provides shared workspaces, community, and services for entrepreneurs, freelancers, startups, and small businesses. The company was founded in 2010 by Adam Neumann and Miguel McKelvey in New York City.

WeWork started as a single co-working space in New York City’s SoHo neighborhood in 2010. Neumann and McKelvey initially intended to create a community-driven workspace for entrepreneurs and freelancers, offering not only a place to work but also a range of events, amenities, and services.

The company quickly grew, expanding to other cities in the US and around the world, fueled by venture capital investments. By 2019, WeWork had over 800 locations in more than 120 cities worldwide and was valued at $47 billion, making it one of the most valuable startups in the world.

However, the company’s rapid growth and high valuation came under scrutiny, and it faced significant challenges in 2019. The company filed to go public in August 2019, but the IPO was later postponed due to concerns about its business model, governance, and financial performance.

Following the postponement of the IPO, WeWork’s co-founder and CEO, Adam Neumann, resigned, and SoftBank, one of the company’s largest investors, took control of the company. WeWork’s valuation was significantly reduced, and the company underwent major restructuring and cost-cutting measures.

Today, WeWork continues to operate as a provider of shared workspaces, albeit on a smaller scale. The company has restructured its operations, reduced its workforce, and implemented cost-cutting measures to improve its financial performance.

Is WeWork Still In Business?