The company’s valuation has tumbled in spectacular fashion, and now its biggest backer, the Japanese conglomerate SoftBank, is attempting to correct course after a buyout. SoftBank has valued WeWork at less than $5 billion, down from nearly $30 billion in June.
Its cofounder Adam Neumann was ousted in September and replaced by two co-CEOs, Sebastian Gunningham and Artie Minson, as part of a series of moves to restore confidence in the company and its leadership. An S-1 filing in August revealed Neumann’s web of loans, real-estate deals, and family involvement with the company, which eventually led to his ousting.
After SoftBank last month negotiated a deal to bail out WeWork, its CEO, Marcelo Claure, was tasked with overseeing the transition. The search for a new WeWork CEO is reportedly ongoing.