- WeWork has been in turmoil since it filed its public-offering paperwork in August.
- In one month, the coworking company cut its valuation down to as low as $10 billion from $47 billion, removed Adam Neumann as CEO, and delayed its initial public offering indefinitely.
- In October, WeWork is being taken over by its biggest investor, Softbank. Softbank is reportedly paying Neumann to step down from his position as chairman of the board at WeWork, and the company’s valuation will drop to $8 billion, according to The Wall Street Journal.
- Visit Business Insider’s homepage for more stories.
What just happened to WeWork?
Attempting to go public this fall stirred up a lot of drama – in finances and leadership – for the nine-year-old coworking company.
Here’s a 30-second explanation of what’s going on:
WeWork publicly filed its IPO paperwork on August 14.
After the filing, WeWork faced intense scrutiny of its finances and leadership from investors and the media. There were concerns about WeWork’s path to profitability and its leader, CEO and cofounder Adam Neumann. Ultimately, WeWork delayed its IPO on September 16.
After the delay, attention shifted to Neumann's inappropriate antics, Neumann stepped down from his role as CEO on September 24.
SoftBank, WeWork's biggest investor, is taking control of the company on October 22. SoftBank is reportedly giving Neumann $1.7 billion to step down from his position as chairman of the board at WeWork.
Here are some more details you might want to know:
"The We Company" was described in its IPO filing as an umbrella with three major arms: WeWork, WeLive, and WeGrow.
The antics that led to Neumann stepping down from his CEO role included reports of him smoking weed on a private jet, serving employees tequila shots after discussing layoffs, and trademarking the term "We" and then forcing WeWork to buy it for $5.9 million.
His successors, Artie Minson and Sebastian Gunningham, have stepped into the role of co-CEOs of WeWork as it attempts to navigate its future.
With SoftBank's takeover, WeWork's valuation is expected to drop to $8 billion, according to The Wall Street Journal.
Now, here's a 5-minute timeline of events, via our past coverage.
October 22
SoftBank is reportedly paying WeWork founder Adam Neumann $1.7 billion to step off the board
October 21
WeWork is set to evaluate rescue proposals from SoftBank and JPMorgan on Tuesday
WeWork CEOs tell staff layoffs are coming in leaked email ahead of decision on rescue package
SoftBank is planning on paying Adam Neumann $200 million to step aside if it takes over WeWork
WeWork has reportedly postponed thousands of layoffs because it's too broke to pay workers severance
October 20
New WeWork financials show growing debt in its international unit
October 18
October 16
SoftBank reportedly hired restructuring and bankruptcy bankers to help revive WeWork
WeWork says it has 527,000 'memberships,' but that's not as straightforward as it seems
October 15
Goldman Sachs says it absorbed an $80 million write-down after WeWork's IPO disaster
WeWork is reportedly favoring JPMorgan over SoftBank to bail out the buckling real-estate firm
Investors are more worried than ever that WeWork won't be able to pay down its debt
October 14
16 wild details that reveal the lavish life of WeWork founders Adam and Rebekah Neumann
October 13
16 wild details that reveal the lavish life of WeWork founders Adam and Rebekah Neumann
October 12
October 11
Inside WeWork's troubled $850 million Lord & Taylor building: A tale of outsize ambition, audacious renovations, and now financial worries
WeWork is reportedly rushing to get a new debt-financing deal and could run out of cash next month
October 10
October 9
Goldman Sachs is setting up a WeWork office in London as an emergency trading floor
October 8
WeWork is reportedly seeking a $4 billion lifeline from SoftBank and JPMorgan
October 7
WeWork is hitting the brakes after its IPO went up in smoke - and landlords could pay the price
October 5
October 4
October 3
A New York real estate group sounded the alarm on WeWork years before it plunged into chaos
October 2
WeWork is on pace to run out of money by mid-2020, Bernstein says
October 1
WeWork is reportedly considering selling its stake in women's coworking space The Wing
WeWork is planning to sell off 2 more tech companies
September 30
WeWork shelves IPO for now under new leadership
WeWork's bonds plummet to record low after company pulls its IPO
Some WeWork employees are now worried that they have a 'black mark' on their résumés
WeWork went from a $47 billion valuation to a failed IPO. Here's how the company makes money.
September 29
September 28
How WeWork spiraled from a $47 billion valuation to talk of bankruptcy in just 6 weeks
September 27
September 26
WeWork's Adam Neumann voted to oust himself as CEO after failed IPO, sources say
WeWork is reportedly halting all new lease agreements with property owners
WeWork's new co-CEOs are planning to oust 20 of Adam Neumann's friends and family members
WeWork is reportedly in talks with SoftBank about a $1 billion lifeline
September 25
WeWork is reportedly unlikely to go public this year - and thousands of layoffs could be coming
WeWork's new CEOs want to sell off 3 of its businesses as the company looks to cut costs
September 24
Cofounder Rebekah Neumann is giving up her roles at WeWork as her husband steps down as CEO
September 22 and 23
The New York Stock Exchange appeared to troll WeWork on Twitter
WeWork board members are talking about ousting CEO Adam Neumann amid IPO turmoil
September 20
WeWork just lost another executive as the chief investment officer of its real-estate fund resigns
Billionaire Oracle cofounder Larry Ellison calls embattled WeWork 'almost worthless'
September 19
September 18
WeWork's collapsed IPO has reportedly tanked a $112 million London property deal
WeWork CEO Adam Neumann told employees he's 'humbled' by the collapse of the firm's IPO
September 17
WeWork will reportedly shelve its IPO in a 'last-minute decision' after weak investor interest
September 16
WeWork is reportedly leaning toward delaying its IPO
WeWork's top communications executives are jumping ship as the company struggles to go public
September 13
WeWork is now considering an IPO valuation as low as $10 billion, down from $47 billion
SoftBank reportedly plans to boost its stake in WeWork by $750 million in the coworking giant's IPO
WeWork just announced a Nasdaq listing and fresh limits on CEO Adam Neumann
September 12
September 11
WeWork is reportedly considering big governance changes in order to rescue its flailing IPO
September 10
September 9
WeWork reportedly might slash its valuation below $20 billion, or even postpone its IPO
September 6
September 4
August 27
August 20
August 15
Morgan Stanley backs out of WeWork's monster IPO after getting snubbed for the lead role
August 14
WeWork is going public with an extremely weird, complicated structure
WeWork files for IPO, revealing spiraling losses of $1.6 billion
'The energy of we': People are roasting WeWork for its cultish IPO filing
WeWork IPO reveals company loaned millions to CEO Adam Neumann and other company execs