WeWork’s Adam Neumann Reflects: ‘Multiple Lessons, Multiple Regrets’
WeWork’s Adam Neumann Reflects: ‘Multiple Lessons, Multiple Regrets’
(Bloomberg) -- Adam Neumann, who led WeWork Inc. to become one of the world’s most valuable startups before it nearly collapsed, expressed some regrets about his time in charge during a rare interview at a conference Tuesday. He also defended many choices he made there.
“I’ve had a lot of time to think, and there have been multiple lessons, multiple regrets,” he said at the New York Times DealBook conference. Neumann said he felt particular regret for the hundreds of employees who got fired, and he was quick to point out the firings came after he had stepped down as chief executive officer in late 2019.
In his retelling, Neumann’s brash leadership style was right for WeWork’s early stages. It helped the business attract Apple Inc., Google and Facebook Inc. employees to its spaces, he said. “It was working phenomenally.”
That style turned into a liability soon after the company tried to court public investors in 2019. “What I missed big time: That same style that worked so well until then was not the right style for Wall Street,” he said.
Initially, bankers chased after WeWork, drawn to the allure of one of the highest-profile initial public offerings of the decade. They flattered Neumann with proposed valuations that exceeded the $47 billion WeWork had earned from a deal with SoftBank Group Corp. in January 2019. The courtship “went to my head,” Neumann said.
Neumann cited a meeting with Apple CEO Tim Cook, where Neumann said he did most of the talking when he should have been listening. Neumann said he owes an apology to Cook, who was onstage an hour earlier at the event Tuesday.
During the interview, Neumann dodged questions about boozy parties at the company. He defended the practice of personally buying commercial buildings and leasing them to WeWork while he was CEO. He said it ended up being a money-loser for him anyway.
As the IPO plan fell apart and the company was cratering in late 2019, Neumann felt stressed, he said. At one point, he was photographed walking around New York City barefoot. That morning, Neumann said, his wife had given him a pep talk: They still have a loving family and could move in with her mother. (Rebekah Neumann comes from a famous Hollywood family. Her cousin is the actress Gwyneth Paltrow.)
These days, Neumann said, he enjoys advising entrepreneurs and is confident about the prospects for the company he founded, which listed last month after merging with a special purpose acquisition company. WeWork has a “bright future,” Neumann said.
Investors reacted favorably to Neumann’s appearance. The shares climbed as much as 4.6% after his interview. However, the stock still trades at less than the $10 initial offering price for the SPAC that took WeWork public.
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