Two years ago WeWork tried to go public and it was a disaster. One of the reasons why is because Adam Neumann was their CEO.
The company was valued at one point under Neumann at $47 billion. It took a while to discover the company’s financials were essentially a great writing of fiction. Complete smoke and mirrors accounting to try to show the company was not a disaster.
Neumann was sent packing with a near billion dollar golden parachute, so the grown-ups are now trying to turn it into a profitable company.
WeWork is going to give it another try with an IPO, this time via a $9 billion blank-check merger in October.
On a recent earnings reporter, the company said it had $228 million in revenue, which isn’t horrible considering so many young people are fearful of going into an actual office
The company also said their occupancy is up to 60%.
One of the most important strategies for the company now is making sure Wall Street and investors know they company has nothing to do with Neumann.
The company also shed its 500 worst building leases, which helped trim their total bill for lease payments by $400 million and their administrative expenses are down $1 billion.
The company is still going to push a culture that initially was successful that the the company provides a fun place to work.