WeWork is hiring a new CEO:
Here’s everything you should know!
25,325 Views 26, 2019, 03:32 pm
WeWork is selling everything here to save its business post-Newman
Sergei Klebnikovforbes Staff market
I cover breaking news with the target on money and markets.
WeWork to adjust corporate governance, further IPO valuation. WeWork is cutting costs in the bid to save its business and restore investor confidence. DREW ANGERER / GETTY IMAGES.
Topline: After the departure of emboldened cofounder Adam Newman as it begins life under new leadership, WeWork better divests some of its assets to divest some assets and make another attempt at an initial public offering trying to.
To replace Newman, WeWork announced two new CEOs, Arty Minson and Sebastian Gunningham, who have been aggressively quick to cut costs and raise cash. The move does not come too soon, as the company looks to restore investor confidence and save its IPO.
The real estate and workspace firm will sell to three companies — all of which were acquired within the last two years, the first reported on Wednesday. Three segments of its business are being put up for sale: managed by office management company Q, networking services Meetup and marketing firm Conductor.
According to Business Insider, WeWork is also selling a private aircraft used by Adam Neumann, a luxurious Gulfstream G650 that the company bought last year for $ 60 million. Business Insider quoted sources as saying that the luxurious private jet quickly became a symbol of WeWork’s corporate governance issues, raising a red flag for many investors.
According to the information, a group of executives of WeWork’s parent company, We, have met with bankers in recent days to discuss further ways to cut costs, including more than 5,000 employees, or a third of its employees. Other options include a shutdown business allegedly related to education or housing, as well as slowing down WeWork’s expansion plans.
Due to the changes in the discussion, WeWork may sell some real estate and withdraw from office-lease markets that are harming their businesses, such as those in China. Other assets and businesses that could be cut include Rise By Wee, a computer programming school called Jim, a Flatiron and a private elementary school in New York, as well as New York and Washington, D.C. Includes various residential apartments.
WeWork declined to provide a comment for this article.
The man who spotted Adam Newman, the meteorite of WeWork, was ousted as CEO on Tuesday amid growing investor concern over the company’s business model and erratic corporate governance ahead of its planned IPO. WeWork delayed its debut as a public company last week, after shrinking from an estimated $ 10 billion to $ 47 billion in January.
A rift had developed between Newman and SoftBank President Masayoshi Son over Newman’s precarious leadership style, which allegedly led to the charge to oust the divisive CEO. SoftBank is the largest shareholder of WeWork, which invests more than $ 10 billion in the company.