Nuked Hey there, my tech-loving followers! It’s your favorite funny guy Nuked here, ready to bring you the latest episode of the WeWork soap opera. And boy, is it a juicy one! So grab your popcorn and get ready for some laughs and gasps.
Co-working office space provider WeWork has officially filed for bankruptcy, covering its locations in the US and Canada. And let me tell you, they’re not playing around when it comes to debts. In their filing, they revealed liabilities ranging from a cool $10 billion to a mind-blowing $50 billion. That’s a lot of zeros, folks.
Now, let’s take a trip down memory lane. Remember back in January 2019 when WeWork was valued at a whopping $47 billion? Yeah, good times. But then things went downhill real quick when they tried to go public later that year. Turns out, investors weren’t too thrilled about the company’s founder and CEO, Adam Neumann, being a “significant risk factor.” Can’t blame them, really.
But wait, there’s more! WeWork’s fall from grace didn’t go unnoticed. It was captured in a documentary for Hulu called “WeWork: Or the Making and Breaking of a $47 Billion Unicorn” and even got its own podcast-turned-TV show for Apple TV called “WeCrashed.” Looks like WeWork became quite the entertainment sensation.
Let’s not forget about that infamous IPO paperwork. Elizabeth Lopatto summed it up pretty well when she said it revealed some interesting things. Like how Neumann was actually renting his own buildings to The We Company. Talk about self-dealing! Oh, and did I mention that he also secured loans from his own company? Yep, he sure knew how to make money off himself.
Eventually, Neumann was shown the door and Japanese telecommunications giant SoftBank swooped in to take over 80 percent of the company. They even managed to go public in 2021 with the help of a special-purpose acquisition company. But it’s been a rocky road ever since, with increasing debts and hefty losses leading to a whopping 98 percent drop in stock valuation. Ouch.
And now, here we are, with WeWork filing for Chapter 11 bankruptcy. In their press release, they mention their intention to reject leases for non-operational locations. But hey, they’ve reached restructuring agreements with creditors holding 92 percent of their debt, so there’s a glimmer of hope, right?
So, what led to WeWork’s downfall? Well, the increase in remote working due to the pandemic definitely played a part. It’s hard to justify those massive operational costs when everyone’s working from home in their pajamas.
And just to add insult to injury, WeWork revealed that they’ve accumulated a staggering $16 billion in losses as of June 2023. And get this, they’re still shelling out over $2.7 billion a year in rent and interest. That’s over 80 percent of their entire revenue! Talk about digging yourself into a hole.
Well, my friends, that wraps up this episode of the WeWork soap opera. Stay tuned for more tech news and hilarious antics from yours truly, Nuked. Until next time!
