
At What Point Does Malfeasance Become Fraud?: Scott Galloway on WeWork - kgwgk
http://nymag.com/intelligencer/2019/10/marketing-expert-scott-galloway-on-wework-and-adam-neumann.html
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chollida1
You probably remember the author from

[https://www.profgalloway.com/wewtf](https://www.profgalloway.com/wewtf)

and

[https://www.profgalloway.com/wewtf-part-
deux](https://www.profgalloway.com/wewtf-part-deux)

It's not possible to overstate just how big of a debacle this has become. When
the S-1 came out everyone at work was shocked at just how bad it read.

The self dealing, the premature cashing out, the 20-1 super voting shares, the
CEO's wife getting to name a successor when he dies.

The day the S-1 came out, almost all of wall street realized there would never
be an IPO this year.

> > If you want to talk about real toll here — the real toll is that there’s
> somewhere between 5,000 and 15,000 WeWork employees who took a job and a big
> part of their compensation — the reason they took these jobs was because of
> equity value. And it’s impossible not to count your money 30 days out from
> an IPO. It’s impossible to tell your husband to not start looking at houses.
> It’s impossible not to tell your parents, “Let’s think about going on a
> family cruise together.” It’s impossible not to start thinking that you can
> afford that new car. $47 billion? We’re probably talking about several
> thousand people who were going to be millionaires. Now most of them are
> probably thinking that in the next 30 days there’s a one-in-two chance I
> don’t have health insurance.

This really puts things into perspective. The whiplash that the employees of
WeWork have just experienced must have taken an incredible toll on them.

