Origins
Founded by Adam Neumann and Miguel McKelvey in NYC (2010) as communal co-working spaces for freelancers, startups, small businesses. Offered month-to-month memberships, free beer, millennial aesthetics (neon signs, exposed brick, phone booths).
Rise of a “Unicorn”
Growth Mania: 111 locations (2014) → 287 (2017) → 625+ (2019) in 127 cities globally. Rebranded as “The We Company” (2019), acquired coding bootcamp Flatiron School ($28M), Meetup ($200M), women’s co-working The Wing competitor WeLive.
SoftBank’s Vision Fund: Raised $4.4B from SoftBank (2017), $2B more (2018), valued at $47B peak (January 2019) — more than SpaceX. Neumann’s pitch: “elevating the world’s consciousness” through community, not just real estate. Vision Fund’s Masayoshi Son pushed aggressive expansion.
The Fall
Failed IPO (August-September 2019): Filed S-1 revealing $1.9B loss on $1.8B revenue (2018), negative margins worsening with scale. Neumann’s conflicts of interest exposed: personally owned “We” trademark, leased buildings to WeWork, used company loans to buy properties.
Corporate Governance Scandal: Neumann had 20:1 voting control, smoked pot on private jets, brought tequila shots to investor meetings, partied during employee layoffs. Board lacked independence. WSJ/FT investigations detailed chaos.
Ousted: Neumann forced to resign September 2019, received $1.7B exit package (stock, consulting fees, loan repayment). Valuation crashed to $8B. SoftBank took control, Marcelo Claure replaced Neumann.
Bankruptcy and Revival
Pandemic Collapse: Occupancy cratered (remote work eliminated demand), burned $3B+ annually. Went public via SPAC October 2021 at $9B valuation (down 81% from peak).
Bankruptcy (November 2023): Filed Chapter 11 after stock fell below $1, cited “legacy real estate obligations” (long leases, short memberships = structural mismatch). Closed 40+ locations 2023. Exited bankruptcy 2024, restructured debt.
Cultural Impact
Cautionary Tale: Became symbol of VC excess, charismatic founder cult, SoftBank Vision Fund recklessness ($100B fund lost $17B on WeWork). Masayoshi Son called it “biggest mistake.”
Hulu Documentary WeWork: Or the Making and Breaking of a $47 Billion Unicorn (2021), Apple TV+ WeCrashed (Jared Leto as Neumann, 2022) dramatized rise/fall.
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