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Ark Restaurants Announces Financial Results for the First Quarter of 2021

Ark Restaurants Announces Financial Results for the First Quarter of 2021

WeWork Companies Inc.
TypePrivate
IndustryCommercial real estate
Founded2010; 11 years ago (2010)
FoundersAdam Neumann
Miguel McKelvey
HeadquartersNew York City, ,
U.S.
Number of locations
120 cities, 828 buildings (as at 2020. Value is self-reported)[1] (2019)
Area served
Worldwide
Key people
Marcelo Claure
(Executive Chairman)
Sandeep Mathrani
(CEO)
BrandsWeWork, WeWork Labs, WeLive, WeGrow, Rise by We
ServicesShared workspaces and related services
RevenueIncrease $3.5 Billion(2019)[citation needed]
Members600,000
Number of employees
6,000
ParentSoftBank (80%)
SubsidiariesFlatiron School
Websitewework.com

WeWork is an American commercial real estate company that provides flexible shared workspaces for technology startups and services for other enterprises. WeWork designs and builds physical and virtual[2] shared spaces and office services for entrepreneurs and companies.[3] Founded in 2010, it is headquartered in New York City.[4] As of 2018, WeWork managed over 4 million square metres.[5] WeWork's parent company was named The We Company, now WeWork.[6]

The company gained mainstream media attention in 2019 with its failed Initial Public Offering (IPO) of company stock. The Wall Street Journal noted that upon the release of its public prospectus in August 2019, the company was "besieged with criticism over its governance, business model, and ability to turn a profit."[7] WeWork lost over $2 billion in 2018.[8] In September 2019, following mounting pressure from investors based on disclosures WeWork had made in its S-1 filing for the IPO, company co-founder Adam Neumann resigned from his position as CEO and gave up majority voting control in WeWork. Amid growing investor concerns over its corporate governance, valuation, and outlook for the business, WeWork formally withdrew its S-1 filing and announced the postponing of its IPO. At that time, the reported public valuation of the company was around $10 billion,[9] a reduction from the $47 billion valuation it achieved in January and less than the $12.8 billion it had raised since 2010.[10]

In October 2019, Neumann received close to $1.7 billion from stakeholder SoftBank for stepping down from WeWork's board and severing most of his ties to the company.[11] He was retained as a consultant with an annual salary of $46 million.[12] The New York Times called the company's failed effort to go public and related turmoil, "an implosion unlike any other in the history of start-ups," which it attributed to Neumann's questionable tenure and the easy money previously provided to him by SoftBank, led by Masayoshi Son.[13]

  1. ^ WeWork office space locations
  2. ^ Sheftell, Jason (July 22, 2011). "WeWork gives alternative to working at home with swanky buildings across NYC". Daily News. Archived from the original on April 2, 2015. Retrieved March 13, 2015.
  3. ^ Sweeney, Deborah. "Best of 2011: My 5 Favorite Startups". Forbes. Archived from the original on April 2, 2015. Retrieved March 13, 2015.
  4. ^ Gellman, Lindsay; Brown, Eliot. "WeWork: Now a $5 Billion Co-Working Startup". The Wall Street Journaldate=15 December 2014. Archived from the original on April 2, 2015. Retrieved March 13, 2015.
  5. ^ Morris, Keiko; Brown, Eliot (September 18, 2018). "WeWork Surpasses JPMorgan as Biggest Occupier of Manhattan Office Space". The Wall Street Journal. Archived from the original on August 20, 2019. Retrieved September 11, 2019.
  6. ^ "Under pressure, The We Company now only says it expects to go public 'by the end of the year'". TechCrunch. Retrieved November 17, 2019.
  7. ^ Brown, Elliot (September 19, 2019). "'This is not the way everybody behaves': How Adam Neumann's over-the-top style built WeWork". Wall Street Journal. Retrieved September 19, 2019 – via MSN.
  8. ^ Telford, Taylor (September 23, 2019). "Adam Neumann's chaotic energy built WeWork. Now it might cost him his job as CEO". The Washington Post.
  9. ^ Palmer, Annie (September 30, 2019). "WeWork pulls IPO filing". CNBC. Retrieved September 30, 2019.
  10. ^ Franklin, Joshua (September 16, 2019). "WeWork delays IPO after frosty investor response". Reuters. Archived from the original on September 17, 2019. Retrieved September 17, 2019. In the run-up to the launch of its IPO, We Company has faced concerns about its corporate governance standards, as well as the sustainability of its business model, which relies on a mix of long-term liabilities and short-term revenue, and how such a model would weather an economic downturn. Reuters reported last week that We Company might seek a valuation in its IPO of between $10 billion and $12 billion, a dramatic discount to the $47 billion valuation it achieved in January. ... It would have meant that We Company would be valued at less than the $12.8 billion in equity it has raised since it was founded in 2010, according to data provider Crunchbase.
  11. ^ Maureen Farrell, Eliot Brown (October 22, 2019). "SoftBank to Boost Stake in WeWork in Deal That Cuts Most Ties With Neumann". WSJ. Retrieved October 23, 2019.
  12. ^ Kimball, Whitney (November 8, 2019). "Swindled WeWorkers Ask for Dignity". Gizmodo. Retrieved March 8, 2020.
  13. ^ Chozick, Amy (November 2, 2019). "Adam Neumann and the Art of Failing Up". The New York Times. ISSN 0362-4331. Retrieved November 4, 2019.