
SoftBank to Take Control of WeWork: Sources - nopriorarrests
https://www.cnbc.com/2019/10/21/softbank-to-take-control-of-wework-sources.html
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BlameKaneda
> "SoftBank exec Marcelo Claure will be involved in the company's management,
> while former CEO Adam Neumann's stake will fall to low double digits...Since
> Neumann's departure last month, WeWork's been laser-focused on raising new
> capital. The company has been in talks with J.P. Morgan to discuss a debt
> financing.

> Fallout from the controversies and subsequent plummet in value has led to a
> tense relationship between former Neumann and SoftBank's [Masayoshi] Son,
> who has invested billions into the start-up. Neumann stepped down last
> month. It was also reported that SoftBank has readied a financing package to
> take control of the company and further sideline Neumann, who is also a co-
> founder."

Sounds like SoftBank's interested in eradicating references to Neumann.

Should Neumann be the focus of why WeWork faired so poorly? Or is he just the
fall guy? I don't know, so if someone could enlighten me that would be great.

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jbob2000
Neumann is definitely unconventional, but I don’t see how being a bit
eccentric can lead to this. I’d put Musk and Thiel in the “weirdo techies”
group along with Neumann, and both of their businesses are thriving.

SoftBank was just running a pump’n’dump; Pump up the company for an IPO, dump
it on the market to realize the losses. Luckily, people are starting to catch
on to these schemes from tech companies.

What I’m wondering is, what would we see if we analyzed Snapchat or Twitter
with the same lense? Snapchat is basically dead now, yet it IPO’d at $24
billion. Once Trump is done, Twitter will die down too, and everyone will be
left wondering, is this thing really worth $31 billion?

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gregoriol
WeWork is not a tech company, merely a Silicon Valley company.

Twitter and Snapchat value doesn't come from their tech, but from their user
base.

When you know those differences, you indeed might be better at picking horses.

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schredder
A Silicon Valley company in what way? Its inflated valuation? HQ is in NYC and
they don’t have a real tech offering.

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shmatt
So 8 billion valuation pending 5 billion investment. That means We is down
from $47B valuation to $3B? From one horrible S-1. Amazing

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evgenyp
It's 7.5-8 billion pre-money. Per article:

> The deal values WeWork between $7.5 billion and $8 billion before the
> infusion, sources familiar with the matter say.

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phyalow
I have a feeling SoftBank in 10 years time will firmly be placed in the annals
of history as being the very definition of dumb money.

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joejerryronnie
SoftBank is Webvan 2.0

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tempsy
Well at least SoftBank is buying $1B in shares from employees and investors.
The reality is that most employees were likely awarded shares at no more than
a $20B valuation, so while it's going to lower they will at least get
something.

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onetimemanytime
Hmmmm...Softbank might have had an incentive to bring them back to mother
earth. IPO in 2-3 years?

