In the Summer of 2019, WeWork had a valuation of 47 billion US dollars, a valuation which at the time was higher than Airbnb, Stripes, and SpaceX, with Stripes being the second highest, valued at 35 billion US dollars.
With SoftBank’s 8 Billion US dollar investment between 2017 and 2018, WeWork invested in more locations around the US and the world, expanding with no expenses spared.
In 2019, SoftBank was considering investing a further 16 billion US dollars but instead ended up investing just 2 billion. WeWork was subsequently valued 13 times higher than their largest competitor, IWG, also known as Regus.
WeWork Going Down
The founder and CEO of WeWork Adam Neumann had not acted to the benefit of shareholders, but instead to his own benefit on several occasions. Namely, when he purchased the trademark “We” and sold it back to WeWork for 5.9 million US dollars.
There seems no way back from WeWork’s downfall. “The ambitious vision of WeWork is effectively dead”, stated Shia Ovide, a Bloomberg journalist who has been following the WeWork rise and subsequent fall.
The lack of leadership, of direction, as well as the corrupt decisions, led the board to consider some big changes. Shortly thereafter, Adam Neumann resigned from his position as CEO. However, the company had not been doing well and, consequently, they had to pull back their plans for an IPO.
Now follows a process of trimming away business devotions and having to lay off thousands of employees, to cut down on inevitable additional financial losses.
WeWork scheduled to enter Denmark
Despite the downhill spiral, WeWork is still scheduled to open their first office in Denmark in 2020. The 7 500 square meters office space will be located in Copenhagen’s urban meat district.
WeWork has a collaboration with the renowned Danish architect Bjarke Ingels. The man behind the architectural firm, BIG, is responsible for the fact that 20 percent of the interior of the new location on Skelbæksgade in Copenhagen will live up to the special Danish style. In addition, Danish architect firm Over Byen Arkitekter has contributed to the interior design.
What will, in truth, happen for WeWork in 2020 is yet to be seen.
We believe that information should be free and will therefore never put up a paywall.
If you like reading our reports about the Scandinavian business scene and would like to donate towards the upkeep of the site, we would be very grateful. Click here to donate.