The Inevitable Decline of WeWork

we work was founded by Adam Newman a man who spoke mostly in slogans and his partner Miguel melie back in 2010 Adam made some big claims like that we work a short-term office Leasing Company would Elevate the world's Consciousness unleash every person's superpower and that it operated on a w an operating system that makes work better and living better so yeah slow a simpler and possibly more accurate description of wework is that it's a shared office space with free beer but it's hard to raise $22 billion with that description a bit more magical realism is needed that's why Newman a man who was hardly ever seen near a computer pitched it as a tech company and claimed that we work was the world's first physical social network now obviously the term physical social network doesn't actually mean anything but Venture Capital people love lines like this they focus more on the story than on the numbers these are after all the same people who were impressed when s bankman freed claimed while playing video games that FTX could someday be the world's leading banana procurement app they're possibly even more gullible than Michael Lewis and so I won't make fun of them because it wouldn't be nice and I pretend to be nice on this channel Adam Newman is said to have told anyone who would listen early on that his job was to keep growing the business until it was too big to fail and he got pretty close to that goal in September 2019 Eric rosengren the president of the Boston Federal Reserve Bank actually warned that the collapse of Wei work could lead to huge losses for banks and commercial property owners we work raised $22 billion from Venture Capital firms for a real estate business that never not even once turned a profit it stands out as the worst Venture Capital deal in history earlier this week wework announced that it would not be making two sets of interest payments on bonds which total to over $95 million this kicks off a 30-day grace period that could lead to default the company says that they have enough liquidity to actually make the payments and that they might elect to do so in the coming weeks they say that they will use the 30-day grace period to negotiate with creditors last month ...