Adam Neumann Loses His Golden Parachute: Is Bankruptcy on the Horizon?
It’s no secret that businessman Adam Neumann has been in hot water as of late. As the controversy surrounding his company, WeWork, continues to unfold, the 41-year-old co-founder continues to take on more financial hits.
Plummeting Net Worth
After being worth a reported $14 billion at his peak, Neumann has now lost his billionaire status altogether. In fact, his personal wealth has plummeted to just $400 million in just less than a year. This new development seems to be a direct effect of SoftBank’s withdrawal of the $3-billion bailout from the businessman’s struggling workspace company. The initial arrangement reportedly stipulated that a third of the amount would go directly to Neumann.
SoftBank’s change of heart was reportedly caused by the new findings of the investigations surrounding WeWork. The Japanese holding company has deemed that it would be irresponsible to continue the deal in light of the recently revealed information and circumstances. WeWork’s troubles began when the media took notice of its losses after the company filed S-1 paperwork to go public in 2019. Since then, Neumann has stepped down from his post as CEO amidst allegations of self-enrichment practices.
Despite all of this though, SoftBank maintains its commitment to WeWork. The holding company is reportedly the largest outside shareholder having injected a whopping $9 billion to fund it. Its CEO, Masayoshi Son, has also previously maintained a supportive stance to both Neumann and the space-sharing company. This initial stance may be due to SoftBank’s support of high-risk, yet potentially high reward company bets through initiatives like the ‘Vision Fund’, which finances late-stage startups.
However, Son has recently opened up about his thoughts about what went wrong with WeWork and said he might have made a mistake when he believed too much in its former leader. He also admitted that SoftBank paid too much valuation for the company.
Part of what made people raise their eyebrows about WeWork and its now-canceled IPO is Neumann’s desire for the company to be ‘generationally controlled’ and has even reportedly planned for his wife, Rebekah Paltrow Neumann, to succeed him. Another criticism of WeWork’s former CEO is his habit of laying off people every year in attempts of increasing the productivity of those who remain and are fearing they may be the next ones to be let go. His wife is also accused of firing people for seemingly shallow reasons.
More in Lifestyle
These Celebrities Made, Lost and Earned Their Fortunes Back Again in these Amazing Redemption Arcs
Celebrities often appear to live a charmed life on the outside. They get to wear designer clothes to attend the most...December 31, 2020
The Important Life Lessons Millionaires Wish They Knew When They were Young
Knowing what you know now, don’t you just wish you can go back in time to give your younger self some...December 28, 2020
Stand Out from the Competition and Highlight this Important Skill Set in Your Resume
More than technical skills, your resume should also highlight your transferable skills. Also known as soft skills, this set of skills...December 27, 2020
Thinking of Starting a Business? 3 Industries Rife with Opportunities Even During the Pandemic
With most businesses already struggling, you might think the pandemic isn’t the best time to start one of your own. While...October 21, 2020
Oprah Winfrey Once Received a Shockingly Low Salary for a Steven Spielberg Film
Oprah Winfrey is a highly successful talk show host. But apart from this, many do not know that she is also...October 20, 2020
Tiger King Joe Exotic Won’t Let Prison Stop Him From Getting Justice… and Millions off Dollars
As Americans were gearing up to spend more of their time inside their homes due to the coronavirus pandemic, Netflix released...April 18, 2020
YouTuber Emma Chamberlain Can Already Afford This Multimillion Purchase and She’s Only 18
Internet celebrities like YouTube stars and social media influencers are sometimes looked down upon. For some, this segment of entertainers and...April 18, 2020
Wealthiest U.S. Congressmen Did Something Suspicious Before the Stockmarket Crash and People Are Livid
The general public may have only had a vague idea of who Kelly Loeffler is a couple of weeks ago. But...April 18, 2020
Mistakes All Dog Owners Should Avoid at All Costs, According to Veterinarians
Many people take pride in being a dog mom or dad. What a lot of them may overlook though is the...April 18, 2020