![](https://afternoonedition.com/wp-content/uploads/2020/04/04-07-WeWork-1-1000x600.jpg)
Adam Neumann Loses His Golden Parachute: Is Bankruptcy on the Horizon?
![](https://afternoonedition.com/wp-content/uploads/2020/04/04-07-WeWork-1-1000x600.jpg)
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
![](https://afternoonedition.com/wp-content/uploads/2020/04/Web_150DPI-20190626_WeWork_50_Miller_Street_55.jpeg)
Coworking Insights | The New York-based company offers workspaces for rent to other startups and enterprises
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.
New Realizations
![](https://afternoonedition.com/wp-content/uploads/2020/04/5fb3e0a1bc85bb34857a8078.jpeg)
Business Insider | Son recently made statements on certain mistakes he made in his dealings with WeWork
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.
Management Issues
![](https://afternoonedition.com/wp-content/uploads/2020/04/5d8285fa2e22af61a2437f65.jpeg)
Business Insider | Paltrow Neumann used to serve as the chief brand and impact officer at WeWork
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
-
`
The Mesmerizing Transformation of Halsey: A Musical Icon Turned Makeup Maven
In the dynamic world of beauty and self-expression, Grammy nominee and former 30 Under 30 awardee, Halsey, has taken a remarkable...
April 18, 2024 -
`
The 10 Most Promising Investments in 2024
In the unpredictable world of investments, lat year surprised us with the stock market thriving against all odds. Despite looming recession...
April 18, 2024 -
`
Study Shows Employees Value Work-Life Balance Over Pay
Gone are the days of chasing the almighty dollar without a second thought. Randstad, the world’s leading employment agency, conducted a...
April 17, 2024 -
`
How to Get a Startup Business Loan with No Money: Your Step-by-Step Guide
Securing funding for your entrepreneurial dreams can feel like climbing Mount Everest without oxygen. It’s challenging, but there are paths to...
April 16, 2024 -
`
How Much is Ryan Reynolds Net Worth?
Ryan Reynolds, the quick-witted Canadian actor with a million-dollar smile, has carved a unique path to Hollywood stardom. But his journey...
April 11, 2024 -
`
Why Italy Is the Perfect Solo Adventure Spot
Embark on a soul-stirring solo adventure through the captivating landscapes and rich tapestry of Italy, where every cobblestone street whispers tales...
April 10, 2024 -
`
What is Provisional Credit and How Does It Work?
Have you ever checked your bank statement and noticed the term “provisional credit.” This term frequently appears during disputes or chargebacks....
April 9, 2024 -
`
Elon Musk’s OpenAI Lawsuit | Are OpenAI’s Financial Motives Overshadowing Its Mission Statement?
A recent legal battle has rocked the world of artificial intelligence (AI). It pitted Elon Musk against OpenAI, the research company...
April 8, 2024 -
`
Cultivating Prosperity: Lunar New Year Traditions for Financial Abundance
As we usher in the Lunar New Year, the traditions that accompany this vibrant celebration are not just a cultural spectacle...
February 10, 2024
You must be logged in to post a comment Login