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-   -   Is Adam Neumann - the new Elizabeth Holmes? (https://www.englishforum.ch/international-affairs-politics/294273-adam-neumann-new-elizabeth-holmes.html)

Guest 24.09.2019 20:18

Is Adam Neumann - the new Elizabeth Holmes?
 
Sure looks that way as WeWork is looking more and more like "WeFraud"!

Neumann is reportedly stepping down as CEO but will keep his Board position. Here is the link:

https://www.wsj.com/articles/adam-ne...s&page=1&pos=2

I am sure a new book and HBO documentary will follow:D

Guest 24.09.2019 22:39

Re: Is Adam Neumann - the new Elizabeth Holmes?
 
So much hype and nonsense. Itís great to be imaginative, but people invest in pixie dust. The idea that a company will fail if this guy goes (or something akin to that) is suspect. No one is irreplaceable.

Guest 24.09.2019 23:19

Re: Is Adam Neumann - the new Elizabeth Holmes?
 
The articles I have read are pretty damning regarding Neumann and his wife. He apparently has "fleeced" the company of $700 million in stocks sales ahead of the proposed IPO (a huge red flag) and he has taken out a personal line of credit with JP Morgan, Credit Suisse and other banks for $500 million which is backed by shares of his company as collateral (He has already drawn down $375 million on that line and the share value now??). The couple owns 5 homes and a personal jet and their company hemorrhages cash at an alarming rate. WeWork/WeCom has already been "flagged" for its accounting tactics (overstating revenue).

This guy must be an amazing Svengali/salesman to garner that much VC/PE capital and pitch his company as a "tech" firm when in fact, WeWork is just a commercial real estate firm. The "pixie dust" is the company's business plan - or lack thereof!

The main investor, Softbank, looks to be in ruins - and their initial investment supposedly gave WeWork legitimacy to begin with. My thoughts: Neumann, like Holmes/Theranos, is a fraud.

Honestly, from what I have read, you could not make this stuff up if one tried.

As mentioned, the forthcoming book and documentary should prove interesting :D

Reb77Br 25.09.2019 17:49

Re: Is Adam Neumann - the new Elizabeth Holmes?
 
I hadn't heard of Elizabeth Holmes until recently, and now this guy. Con artists?

Guest 25.09.2019 18:27

Re: Is Adam Neumann - the new Elizabeth Holmes?
 
I think he/Neumann is a complete con artist from what I have read. Should be interesting to see what happens to Elizabeth Holmes; her trial is scheduled for next summer. I read a great book about Theranos and Holmes, "Bad Blood" and it is staggering to me that Holmes was able to dupe Walgreens and investors for so long before anyone figured out that not only was her technological premise flawed but also the finished product.

Jamie Dimon/JP Morgan have a lot at stake in WeWork as their investment in the company and in Neumann was large. SoftBank has even more at stake (11 Billion USD!) Will be interesting to see whether this company can turn things around now that both Mr and Mrs Neumann have been marginalized.

Guest 25.09.2019 18:58

Re: Is Adam Neumann - the new Elizabeth Holmes?
 
WeBollocks would be a far better name :D



This company has zero chance of ever becoming profitable

Guest 25.09.2019 19:24

Re: Is Adam Neumann - the new Elizabeth Holmes?
 
WeFraud, WeScam, WeScrew, "WeBollocks" (great one by the way; hadn't seen that one yet!) I think you are right; ironically the company is screwed :D

Guest 25.09.2019 23:26

Re: Is Adam Neumann - the new Elizabeth Holmes?
 
A good synopsis of where things are with WeWork in terms of debt and restructuring:

https://www.fastcompany.com/90408860/can-wework-survive

And the clock is ticking...If they launch the IPO and it raises 3 Billion in 2019 (the caveat is 2019!), it will unlock another (6 billion in credit lines) which could give the new co Ceos some breathing room.

I frankly do not see this happening but much is at stake for SoftBank and JP Morgan/Jamie Dimon. I find it funny that Mr Arrogant aka Jamie Dimon fell prey to Neumann. It could spell bad times for Jamie and his role in JP Morgan going forward. Time will tell...

Guest 24.10.2019 20:56

!
 
Soft Bank's deal to make Adam Neumann step down boggles the imagination!

According to WaPo, Neuman can sell up to $970 million of his shares; will received $185 million in consulting fees over the next 4 years (really?:confused:) and will have a personal credit line of $500 million established by Soft Bank (to take care of his other personal credit line of $500 million with JP Morgan - of which $395 million has been drawn down at present).

And so this guy grossly mismanages a company (some would accuse him of fraud) and this is the package he receives? Unbelievable! Makes me wonder what inside info Mr Neumann may have on Masayoshi Son, Soft Bank's founder and CEO. This kind of payout for a CEO of a company - WeWork- whose cash flow is so thin they can't even make layoffs ( as they cannot afford the redundancy packages) is unprecedented to say the least. I imagine this could be the next non-fiction bestseller which I am certain is in progress! Here is the link to the WaPo article:

https://www.washingtonpost.com/busin...mments-wrapper

Guest 24.10.2019 21:08

Re: !
 
Quote:

Originally Posted by terrifisch (Post 3113314)
Soft Bank's deal to make Adam Neumann step down boggles the imagination!

According to WaPo, Neuman can sell up to $970 million of his shares; will received $185 million in consulting fees over the next 4 years (really?:confused:) and will have a personal credit line of $500 million established by Soft Bank (to take care of his other personal credit line of $500 million with JP Morgan - of which $395 million has been drawn down at present).

And so this guy grossly mismanages a company (some would accuse him of fraud) and this is the package he receives? Unbelievable! Makes me wonder what inside info Mr Neumann may have on Masayoshi Son, Soft Bank's founder and CEO. This kind of payout for a CEO of a company - WeWork- whose cash flow is so thin they can't even make layoffs ( as they cannot afford the redundancy packages) is unprecedented to say the least. I imagine this could be the next non-fiction bestseller which I am certain is in progress! Here is the link to the WaPo article:

https://www.washingtonpost.com/busin...mments-wrapper

I don't see why he would need to have something on Softbank, Softbank screwed itself with investing hugely in a company without gaining the according part of the votes, so they let somebody else decide what to do with their part of the company. Now the company is going down the drain they can do 2 things.

1. Leave it as is and kiss their money goodbye.
2. Buy up the voting rights and try to make it all work.

They chose option 2.

The article reads as if early investors and founders are the problem while there is no problem. If investors are willing to invest without proper voting rights to decide along they willingly take a risk and should not complain when to have to pull their wallet later if they want a say.

Guest 24.10.2019 21:20

Re: Is Adam Neumann - the new Elizabeth Holmes?
 
Personally, I think this guy is a complete fraud and cannot imagine how he managed to hoodwink so many with his so called "IT company" which is in fact, a glorified Commercial Real Estate venture. He must be quite the salesman/con artist! That said, very surprised Jamie Dimon of JP Morgan, fell prey to this guy's "con". And the same could be said of Soft Bank - which, with their investment, gave Neuman and his company "legitimacy" in the first place.

Interesting that the Soft Bank deal allows Neumann to pay back the personal loan to JP Morgan et al. The whole deal smells rotten to me...


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