$47 billion valuation went to his head

$47 billion valuation went to his head

Ousted WeWork CEO Adam Neumann stated Tuesday that the corporate’s personal, $47 billion valuation went to his head, within the first interview since departing the corporate in 2019 amid its botched IPO.

“So yes the valuation made us feel like we were right, which made me feel that whatever style I was leading at was a correct style at the time, so I do think it affected it,” he advised CNBC’s Andrew Ross Sorkin at The New York Occasions DealBook on-line summit. “I also think the chase … maybe it went to my head. I do think at some point it did.”

The interview comes lower than a month after the corporate went public by a SPAC merger with a $9 billion valuation.

Neumann confirmed experiences that JPMorgan Chase CEO Jamie Dimon, the financial institution tapped with main the IPO, satisfied him to step down from the corporate. He additionally talked about classes discovered, addressing the backlash surrounding the roughly $1 billion he obtained when he walked away from WeWork.

“This perception that as the company went from a $47 billion valuation down to $9 billion, that I profited somehow while the company was going down, is completely false,” he stated, including that it was a story he could not right as a result of he “wasn’t speaking.”

Neumann stated he understands the notion and is “disappointed” for the staff that misplaced their jobs or took decrease salaries and inventory as a result of they believed within the firm. He stated he by no means supposed for the corporate not to succeed, however each start-up has dangers.

“When you take equity … and you join a start-up, you take a risk,” he stated. “Now, I wish it would have worked out differently for everybody but the market now decided that it’s worth $9 billion. It’s getting measured on a daily basis and I actually think WeWork today has a better opportunity than it had then.”

Neumann additionally responded to allegations of ingesting and drug use on the firm. He stated they “make good stories for movies and television shows.” He added that weed is the one drug he is conscious of and that WeWork had a “fun” tradition.

He didn’t touch upon a suggestion from the viewers to share his wealth with WeWork workers however stated he and co-founder Miguel McKelvey have finished issues privately with their cash that they don’t seem to be prepared to focus on. Neumann added that he’s presently investing by a household workplace, and he is all in favour of cryptocurrencies.

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