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<blockquote data-quote="al97" data-source="post: 153453" data-attributes="member: 29424">9 Nov - Commercial Awareness - Private Equity Topic: WeWork Filed for Chapter 11 Bankruptcy<a href="https://www.ft.com/content/775ec01c-1f57-4105-bbc2-b048865056f7" target="_blank">https://www.ft.com/content/775ec01c-1f57-4105-bbc2-b048865056f7</a>The bankruptcyWeWork struck an agreement with nearly all of its creditors to transform $3bn of existing loans and WeWork was powerful during its prime. At one point, it surpassed JPMorgan Chase as New York’s largest commercial tenant and controlled the second most square feet in London, right below the government. In 2017, the CEO, Neumann, persuaded SoftBank to invest $4.4bn nad brought the valuation to $20bn. At this point, FT reported that WW’s valuation was actually closer to $3bn. Just a year later, Softbank committed another $4.5bn. In 2019, the company was valued at $47bn. Why did WeWork fail? The expanded rigorously by buying properties all over the world because they believe that companies, from small start-ups to Fortune 500, will eventually abandon long office leases and ultimately move into flexible co-working space, like the ones WeWork provided. However, during COVID-19 social distancing policies, nobody was using office at all. Secondly, companies also realised they were able to cope with hybrid working mode, so it isn’t necessary to transform to co-working space. The CEO’s addiction issue was also discussed. He smokes marijuana and drinks alcohol heavily. However, Softbank concluded that addiction issues are not sufficient to ounce him as a CEO, it is only when he commits violent crime.</blockquote>

[QUOTE="al97, post: 153453, member: 29424"] 9 Nov - Commercial Awareness - Private Equity Topic: WeWork Filed for Chapter 11 Bankruptcy [URL]https://www.ft.com/content/775ec01c-1f57-4105-bbc2-b048865056f7[/URL] The bankruptcy WeWork struck an agreement with nearly all of its creditors to transform $3bn of existing loans and WeWork was powerful during its prime. At one point, it surpassed JPMorgan Chase as New York’s largest commercial tenant and controlled the second most square feet in London, right below the government. In 2017, the CEO, Neumann, persuaded SoftBank to invest $4.4bn nad brought the valuation to $20bn. At this point, FT reported that WW’s valuation was actually closer to $3bn. Just a year later, Softbank committed another $4.5bn. In 2019, the company was valued at $47bn. Why did WeWork fail? The expanded rigorously by buying properties all over the world because they believe that companies, from small start-ups to Fortune 500, will eventually abandon long office leases and ultimately move into flexible co-working space, like the ones WeWork provided. However, during COVID-19 social distancing policies, nobody was using office at all. Secondly, companies also realised they were able to cope with hybrid working mode, so it isn’t necessary to transform to co-working space. The CEO’s addiction issue was also discussed. He smokes marijuana and drinks alcohol heavily. However, Softbank concluded that addiction issues are not sufficient to ounce him as a CEO, it is only when he commits violent crime. [/QUOTE]

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