Why is Adam Neumann getting more money?
Can someone please explain this to me? This guy is a fraud and was sketchy throughout WeWork's entire history. Shouldn't he be the target of some lawsuit or something? The guy literally got a fat $2BN(?) payday from this garbage idea. Am I losing it?
Softbank an absolute joke. But I'm sure he still owns a large chunk of the company, so to buy We, he's obviously getting paid for his % ownership.
Can't they wait until the inevitable bankruptcy and then pick it up for pennies on the dollar? Mind boggling that people are still throwing money at him.
Also how did he not get in deep shit by leasing his own properties to WeWork? That had to have been illegal... right?
No, but investors are morons for investing with the type of conflicts he had.
I share your same thoughts. If Neumann was playing hardball. SoftBank should have just waited until the value of the company was equivalent to debt, essentially making the company worthless, then buy-out the company . Not sure if SoftBank is held to a certain criteria by their investors.
Does SoftBank solely exist to provide welfare capital to US start-ups? Nothing they do makes any sense...
Super majority voting shares.
I fucking deserve this cash. Mayayoshi Son's softbank turns into a hardbank when he looks at my beautiful luscious locks on my 6'5 frame. WeSexy af dawg.
This is inspiring. If you fail, fail big and fail up. You might just stupid your way into the billionaires club.
He's a dishonest creep but far from stupid. The ones that deserve to be labeled stupid are the ones that OK'd Nueman personally selling his own company a trademark for The We Company, a trademark he only registered a couple months before the announced name change.
Good points. I generally dislike the guy and was just joking around. If you read about his valuation rounds with the same investor it's pretty ridiculous. Could make for a very good movie, I would love to see Adam McKay direct this.
dishonest? YES. a creep? NO. snorting lines of cocaine daily? YESSIR. into goat play? NO
he didn't stupid his way into the club. He fooled others into giving him a lot of their money. Didn't you hear? Wework is a powerful tech company with a new and amazing business model that's going to change EVERYTHING.
ELEVATE YOUR CONSCIOUSNESS MOTHERFUCKER
this is 100% true. A majority of real estate billionaires have gone through bankruptcy at least once along the way. All that matters is raising other people's money, leveraging your own capital position as much as humanly possible, and exiting by selling the dream to someone else before it actually has to be realized. This is the new economy nowadays. Double and triple promotes are becoming commonplace.
also curious what double or triple promotes are. i can guess but i've neve rheard the phrase before.
Does anybody know how much the other co-founder made?
Non, this was a pay off to get Neumann to give up his voting rights and board position. He still retains his equity stake.
The answer is simple, Son isn't as smart as he thinks and he can't invest in tech like Peter Thiel. In fact, Son seems like a dumb fuck to me.
Really? You might want to Google his net worth.
I'm no SoftBank fan but the guy has made some serious money. :)
Yeah but as most money managers even if they have been super successful in the past (in our case dot.com and telcos) it doesn’t mean that they will be forever - see woodford in the UK, GAM, or the Bond King. Sometimes scale makes them make shitty decisions. People were talking about how stupid both in comferences and in memes Softbank was to throw money at wework. Investors in the fund were doubtful especially given the fees they pay.
And how much of it was in the last ten years? Anyone with a pulse made money the last ten years, it was almost impossible not to.
Not sure how this changes the fact that he's been a dumb fuck digging deeper into wework, unless you can't think logically.
The classic if you owe the Bank $100,000 and cant pay you have a problem if you owe the bank $100MM and cant pay they have a problem.
Softbank wants to save face and Adam has tons of leverage in that case
Reminds me of LTCM in the 90s.
I think that people forget that Softbank did borrow agaisnt shares in WeWork/Uber and other incoming IPO startups to do a div recap to boost their IRR. No clue about the terms of the deals but if WeWork would be worthless they may breach some covenants or terms or something.
This bubble has been quiet. I wonder if Neumann, Uber, Lyft, and Peloton are just the beginning.
Dumb VCs don't know how to play in industries with real assets and inventory. Not infinitely scalable like software. Hope they all lose a lot of money.
Peloton was kind of a throwaway. I like their segment and I don't think their product category has a value less than $8B.
The real big bubble is going to be in the leveraged loan market.
Curious if you have any sources/reports I could read up on about this.
No, this is just the way of the clown world now in finance. Apparently it is not imperative to create earnings anymore to become a billionaire - just become a branding expert and grow irresponsibly through multiple venture capital rounds selling a pipe dream to idiots.
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