WeWorkImplosion

Twitter 2019-08 business peaked
Also known as: WeWorkAdamNeumannSoftBankWeCompany

The Hashtag

#WeWork documented the spectacular $47 billion to near-bankruptcy collapse of the coworking company, exposing venture capital excess and charismatic founder worship at its most absurd.

Origins

WeWork, founded in 2010, grew from renting desks to a $47 billion valuation by January 2019—more valuable than established companies like Delta or FedEx. CEO Adam Neumann sold “community” and “elevated consciousness,” not office space.

The implosion began in August 2019 when WeWork filed for IPO. The S-1 revealed catastrophic losses ($1.9 billion in 2018), conflicts of interest (Neumann leased buildings he owned to WeWork), and bizarre governance (Neumann had 20-to-1 voting shares).

Cultural Impact

The scandals kept coming:

  • Neumann trademarked “We” and sold it to WeWork for $5.9 million
  • Company jet smelled like weed (Neumann’s habit)
  • Tequila shots at all-hands meetings
  • $60 million Gulfstream while company bled money
  • “Community-adjusted EBITDA” (fake accounting metric)
  • Rebekah Neumann (wife) as “strategic thought partner” with firing authority
  • WeGrow school (failed side project for employee kids)

The IPO failed spectacularly. Within weeks:

  • Valuation dropped from $47B to $10B
  • Neumann forced out (with $1.7B golden parachute)
  • SoftBank’s Masayoshi Son admitted “I was foolish”
  • Thousands laid off
  • IPO postponed indefinitely

Cultural reckoning:

  • End of “fake it till you make it” era
  • Scrutiny of charismatic founders
  • SoftBank’s $100B Vision Fund questioned
  • “Disruption” as euphemism for unsustainable business
  • The beer-and-ping-pong startup aesthetic died

WeWork survived (barely), went public via SPAC in 2021 at $9B valuation, and filed for bankruptcy in 2023. The hashtag represented venture capital’s dumbest moment—and the hangover that followed.

Sources

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