How WeWork founder Adam Neumann's wealth grew while the company tumbled. Details
bankruptcy filing broke. The stock has tanked 99.8 percent since its initial public offering (IPO). On November 1, the Wall Street Journal reported that WeWork plans to file its Chapter 11 petition for bankruptcy in New Jersey.
The reversal of fortunes came amid a mismanaged IPO attempt, criticisms against founder Adam Neumann's management style, and troubles with its co-working model during the COVID-19 pandemic. So, how much has Adam Neumann lost since his company tanked? Quiet the opposite it seems. In fact, the former WeWork CEO has remained financially secure while distancing himself from the company's (mis)fortures.
Neumann saw his wealth increase despite WeWork's struggles -- with a significant portion being accumulated while the firm prepared its public offering via a special purpose acquisition company (SPAC). As part of the SPAC process, SoftBank reportedly paid 44-year-old Neumann a substantial sum, as per a CNBC report. In 2021, Neumann received a reported $480 million for half of his remaining stake in WeWork, it said.
Initially, SoftBank had sought to back out of purchasing Neumann's full stake, which was valued at $1 billion, leading to a legal dispute. In addition to the $480 million, Neumann also reportedly received $185 million as part of a non-compete agreement and a further $106 million as part of a settlement, it added. In total, Neumann amassed around $770 million in cash from the 2021 SPAC process, despite no longer holding a management role at WeWork, as per the report.
As WeWork's market capitalisation declined, Neumann ventured into real estate tech with "Flow," a company valued at $1 billion. Andreesen Horowitz, a venture capital firm, invested $350 million in Flow. The company aims to address
. Read more on livemint.com
