WeWork - The $47 Billion Disaster
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- čas přidán 19. 11. 2019
- Part 2 of the WeWork Story: • WeWork Part II - Burni...
From $47 Billion, to the verge of bankruptcy in just a matter of weeks. The WeWork disaster is a real roller coaster and it would seem that their erratic CEO Adam Neumann is mostly to blame.
SoftBank video: • How BIG is SoftBank? (...
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Script by Fil Zivko
Sources:
www.nydailynews.com/life-styl...
www.businessinsider.com.au/we...
www.wework.com/locations
www.businessinsider.com.au/we...
/ the-evolution-of-the-o...
techwireasia.com/2018/12/how-...
qz.com/1687299/wework-ipo-rev...
www.wsj.com/articles/this-is-...
www.bloomberg.com/news/articl...
www.forbes.com/sites/greatspe...
www.bloomberg.com/news/articl...
www.businessinsider.com.au/we...
wegrow.com/
craft.co/wework/funding-rounds
www.nydailynews.com/life-styl...
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Why are you still reading? - Věda a technologie
The problem with a great majority of these "start-ups" is that they seem to like inventing problems to solve, instead of solving any actual problems.
And they all think they're Steve Jobs LOL
Not knowing anything about them except for what I saw in this video, I would say they are selling a bunch of nonsense buzzwords to the kind of hipsters that have more money than sense.
Or claim that they found a new solution for old problems but does not know that the solution was already there and not a good one.
That's the difference between a funded startup and an unfunded startup. An unfunded startup has to generate revenue from the very first minute and a profit pretty soon after that. If an unfunded startup fails, the CEO walks off with a significantly negative net worth. A funded startup can milk the funding for a while and then go out for more funding and, if no profits are in the offing, delay the inevitable. I've known (that is, worked for) CEO's of funded startups that walked away from failed companies with millions of dollars, and, for as long as their companies existed, received lavish perks like those enjoyed by the CEO's of companies that were actually successful.
Like in the tv series Silicon Valley, solutism is happening. Inventing problems that didn’t exist in the first place and providing said solution to this.
You know it would be a scam/failure when there are:
-Nonsense motivational slogans
-Strange design furniture
-Ukulele music
Don't forget the celeb laddened parties
Hey, don't knock the uke!
and too many overly-positive commie people, particularly young women.
Gotta love the bullshit slogans like "Committed to elevating the collective consciousness of the world". COVID-19 did a pretty good job at that instead.
Ukeleles are famous because they’re easy to play, so even stupid and untalented people like me could be able to pick it up easily. If you could play a saxophone or a violin, why play ukelele? It’s there so that idiots can say “I can play an instrument!” It isn’t even a traditional instrument, it was created by the Portuguese
It's sad how difficult things have become in the present generation. I was wondering how to utilise some money I had. I used some of it for e-commerce business, but that sank. I'm thinking of how to use what's left to invest, but I don't really know which way to go.
Yeah, things may be hard right now, but I've come to realize both bear and bull market, recessions and economic boom, all provide opportunities to make high gains, I used to call bluff on folks that bragged about making a fortune from such down-markets until I happened to do so myself
I agree. I've been working with a financial advisor since 2020, and I return up to 15k every month, and I don't even have to lift a finger. Although I also think the reason I make this much is because I started with significant capital.
That makes a lot of sense. To be on the safer side and not second guess your market decisions, I’d suggest you reach out to a proper investment adviser for guidance, they’re better equipped at understanding market patterns/movements and adjusting portfolio to match up with these market trends
Monica Shawn Marti is the licensed coach I use. Just research the name. You'd find necessary details to work with a correspondence to set up an appointment.
I looked up her name online and found her page. I emailed and made an appointment to talk with her. Thanks for the tip
"Things were doing great for wework, until people started looking into the company" this is still the greatest line ever spoken on this channel haha
The school part always felt off to me. I work in education and while there are massive issues in the public school systems one of the things that we do focus on more now then ever is critical thinking, communication and how to use tech. I work in a title one school (meaning low income students and families along with a disproportionate amount of foster kids) And yet we have students engaged with tech every day.
STEAMY BUT WHOLE WITH A GIRTHY KOK FORCED INSIDE
I've worked for 4 start up firms and every single one had a greedy, self obsessed, narcissistic CEO.
Sociopaths are attracted to CEO positions
"Big man behind a tiny desk" is how I would describe a lot of these guys
al Mamlūk Don’t you mean the other way around? Tiny man behind a big desk?
Are you rich now then?
Maybe that is why I am not yet rich or successful.........
if you ever feel bad, remember some guy invested $8 billion in this company
Lol why would that help anyone feeling bad. If someone who has 8 billion to invest loses it, I'm sure he's still sitting on a few billion and living a life better than 99. 99999% of people who have ever existed.
So eV n though he lost 8 billion he's still way better off than any of us
ArchimedesTheEducatedOwl one less Yacht.
@@CultofThings and president of one of the most powerful country in the world. Lmao 😂
Wi Fine - 😂🤣😂
insane that youtubers know more than people who even hold 8billion
My favorite WeWork story was in late 2020 when they published an article claiming “if your employees dont want to come back to the office it might show that theyre not very committed to their work or the company”. Very convenient coming from a company that rents office space lol
Well, my new favourite Adam Neumann story (possibly my favourite ever start-up story) is he started a clothing company with knee pads for crawling babies.
Babies don’t have kneecaps.
Covid19 "work remotely" coincidence😉
Adam's response at 9:16 is exactly why I wouldn't invest in Wework. If we don't have access to the numbers, how do we know that shady practises aren't happening?
scammers stablished in Israel, parasits with jewish descend but hate to God for the money and now Israel is a offshore from many russians and parasits like this one thieving money, the jail is waiting for all those craps
If there's one sugardaddy in the world, his name is SoftBank.
so hilarious
100% Agreed. Here in India, they have heavy investment in every Big Startup from OLA, OYO, Snapdeal to PayTM, all companies worth in billions.
They seriously just kept throwing money at a company that was run by a new age hippie lmfao
@@shaikaftab1199 ...hate comments incoming.
Haruka Kanata soft
"But Newman wasn't your typical startup founder"
Narrator: _he was_
100% true
You're wrong, he was first to invent a Ponzi scheme.
@Adam Efimoff
You mean sociopath?
At least Zuckerberg, Jack and the Google guys could code. Adam had 0 tech skills and couldn't read. WeWork is just overhyped real estate. I'm just waiting for the next downturn to obliterate this company.
*Ron Howard voice*
I am trying to avoid making any new buys at this point in other not to get sucked into a bear market trap.It's tough making money in stocks when institutional investors are the driving force behind the selling.. although I read an article of people that grossed profits up to $150k during this crash, what are the best stocks to buy now or put on a watchlist?
The strategies are quite rigorous for the regular-Joe. As a matter of fact, they are mostly successfully carried out by pros who have had a great deal of skillset/knowledge to pull such trades off.
It comes down to technique; a downtrend gives you room to focus on the market and grow significantly in the short or long term. While it is easier to make money when the market is rising, a downtrend can still yield high returns if you have the necessary knowledge and skills. For this reason, I have been scaling up during this difficult period by working with an investment advisor; this has been the only way I have raised up to $150K in the last six months.
I do not really know a lot about the market, but based on what little understanding I do have of supply and demand in the economy, now is the best time to enter the market. The only thing preventing me, however, are the steady price fluctuations, which shouldn't be a problem. However, I really need an advisor, can yours help?
@@Erickruiz562 One of the fiduciaries I deal with is Alicia Ann Jordan. Just check the name. There would be a letter with the necessary information to set up an appointment.
One of the fiduciaries I deal with is Alicia Ann Jordan. Just check the name. There would be a letter with the necessary information to set up an appointment.
“What is your business model?”
“Raising global consciousness.”
“How do you make money doing that?”
“It’s not about money, it’s about changing the world.”
🤣😂🤣😂 and those dummies bought that stuff. What a mess of enablers.
"So why should invest in your company?"
"Oh, because everyone else is going to, and so our Market Value is gonna skyrocket!"
@@diestormlie Pretty sure that's how ponzi schemes operate.
I'm about to start a business in the tech industry.
It's a lemonade stand.
Please, invest.
Hey man, one day I'm gonna be a famous guitarist, want to loan me a few million dollars please?
Add a few charging ports, pitch it like, "What if, people can charge their iFlops while sipping on lemonade?! It's a genius, never before thought of, million dollar Idea!" You will probably get a few investors.
heres 5 billion
How much do you need?
That's all the confirmation I need, how much do you want
I worked in a WeWork building for 2 years. I was blown away at the amount of waste. They had about 4x the staff than was needed. They paid companies to come water their plants... while a WeWork employee 'escorted' them through the building and just stood and watched them water plants. That my friends is the tip of the iceberg. I kept telling everyone "WeWork is not a financially viable business being run this way! It's going to go the way of the dinosaurs". Flash forward to 2020...
Mhm. You were the one that tried to convince people of a company-wide money crisis and complained about the easy money for the good of the company.
@• 9 years ago seems like a typical Karen to me 😂
Sad thing is even if you were right "the markets can stay irrational longer than you can stay solvent"
I worked in a wework building for almost a year. There was a porter in the bathroom that handed people wet towels. His pay was $19/hr. Huge waste of money
So are you a dinosaur now?? 😂
Moral of the story:
create a scam,
be too big to fail,
run company into the ground,
Walk away with 1.7 Billion Dollars
Please create one. I want to see you succeed lmao
In what world but yours is wework too big to fail, lol?
JEWISH WAY. Money laundering
WeWork's greatest hustle was convincing investors it was a tech company.
Proves his ability as a salesperson😅
He trademarked the word "we", and had his own company pay his millions for licensing. Straight up conman
How people can get away with this kind of sh...?!
That part blew my bonnet off
@@awseqd Greed of the people that follow them.. they figure that their payday is coming soon also
Trademarks don't work like you think they do. It doesn't mean no one else can use the word we, it just means someone else can't call their brand that IF, taken along with other parts of their branding, it's similar enough to WeWork's brand that it could confuse the average consumer about which company owns which brand.
The licensing part, though...got no defense for that, just seems like a creative form of embezzlement.
@@OccamsWoodChipper thnx, learned something new
This one of those things that for a split second sounds like a good idea, and then realise that cafes and libraries exist
Lol
or just work from home...
And other government public programs
It's just a Starbucks with conference rooms...
How many libraries have high speed internet (wired and Wi-Fi), private office spaces, conference rooms, on-demand IT support, private phone booths, business class printers, showers, fitness centers, and fully stocked kitchens, _and_ are accessible 24/7? These are standard amenities in co-working spaces.
It's one thing to not be a fan of wearing a suit and tie but walking around the office without showering after a workout is something completely different. No CEO should EVER do something like that.
Yeah, casual is one thing, but basic hygiene, dude! 😷
And bare foot 🦶 too
I remember a very tech savvy, younger guy in our shop coming and telling me about this company and how it was going to revolutionize work and commercial real estate. I thought about it for a good 5 minutes, and then pretty much wrote it off as the dumbest fucking thing I'd heard in my entire working life. It seemed from the outset like solving a problem no one had, using a method no one who's serious about work or growing a business would feel comfortable with, and look at that - I was right. If I, just a normal dude who's worked a lot in my life for and with companies who grow, could see it - a LOT of people could see it. Unfortunately, dreamy-eyed investors and clueless young people didn't see it and the idea got sold. Collaborative open spaces are great for kindergartners. Not so much for smart, productive adults who need to bear down and get shit done. This was a commercial frat party for people who justify what they do.
The type of people that conman was aiming at are the type of people that got fired from Twitter for being totally useless
@@clamum9648 More like the people currently running Twitter, who think that the useless ones are the ones they're firing (only to be then forced to go back on it immediately)
Scams work not to fool people but to set things up for people fool themselves.
@@clamum9648 99% of startups and tech companies' employees are the same thing, tbh. Also hi 1 year ago.
For a company called WeWork, all their stock footage is of hippies drinking coffee and browsing the web.
Gold.
yh a bunch of people on their lunch breaks
Libtard techies
...and drinking Tequila and beer.
on MacBook Pros, of course.
Looks like you can't use a laptop in public if it's not a Macbook Pro in the US.
Those images of photogenic 25 year old's "collaborating" at co-working spaces is like crack to wannabe entrepreneur types.
Everyone who's worked in an office knows everyone is not that (ahem) clean or young.
Mlm vibes
If they are individual entrepreneurs, why are they collaborating? One is an accountant, other one is designer, another one is software dev, with different projects. If they are a company, why don't they get an office, where you can speak about sensitive business information without 10+ "entrepreneur" eavesdropping. You just need half a brain to see that this is a ridiculous idea.
The only real utility of this is the networking opportunity but even then it's so fucking pretentious.
@@alonsobruni8131 Because they don't think of reality, they hear collaboration and start to drool then sign up before a unique or critical thought ever enters their brain.
I know this is an old video, but interestingly enough shared offices actually gained traction in Japan during COVID when more people started working remotely. But one of the reasons is that Japanese houses tend to be very small in big cities (a very typical house for a single person here is often 18/20sqm), so many people don’t have a dedicated space to work at home (some houses I lived in barely had space for a table!). Also, unlimited internet connections usually come with long term contracts, so it makes sense to rent a office, especially if you think your company will call off remote work as soon as they can. SoftBank dude was right, just got the country/timing wrong 😂
For those of you using imperial measurements, that’s 200-220 square feet.
Not convinced. Business model is too risky. Renting a place for 15 years ..
He saw what was happening in japan and applied it to America.
I think it was a really good idea. Make sense why many work at Cafes😅Moreover People likes being a part of a community.
I remember when this happened, hearing the founder had a corporate jet with peanuts money coming in, and I was thinking they're ABSOLUTELY NOT a TECH company, they're just SUBLETTING offices. My brother in law was doing the exact same thing when he realised that renting an entire floor wasn't much more than one office. So instead of renting 1 office for himself, he went for an entire floor. But the ISSUES come. The real estate agent they first used was useless, you're expected to GIFT the first 2 months rent, AND THEN..... you have to GET renters and HAVE ENOUGH of them to KEEP ahead of things. If you don't have CONSISTENT tenants and ENOUGH of them, YOU'RE DOOMED.
“He purchased a 60M dollar jet...”
We’re done here.
Jets are good investment when you travel TOO much and you don't have time to spare, this guy didn't need to
If you travel enough it’s a good investment. More than anything, you have a 60M asset on the books that you get to depreciate over its lifetime, which helps offset revenue for taxes. It’s not necessarily a good investment if you’re not going to use it a ton, but purchasing a jet does make sense for larger businesses.
Lmfaooo
@@raptor_boquita Nah the cost alone will be a cash burner.
@@raghav1666 shocking he managed to walk away with billions 🤔, can't get my head around how he managed.
"Hi, I don't wear a tie and have a minimalist website that's losing money, can I have a couple billion dollars?" Unicorn investing in a nutshell
Pyramid schemes in a nutshell.
Stupid, pretty people, with stupid money, making pretty, but stupid decisions. I'm not surprised. There's enough money to fix the problems in the world, the problem is the people who are holding on to all of it, and enslaving us with it. Research history, not all leaders are created equal, and people are selfish as f***.
And yet, people still keep falling for it.
Emron guys wore ties at least
He didn't like wearing shoes either
This is a wild story to me. 6 days a week I worked next door to a WeWork location for 3 years. I always wondered what it was. I never really bothered to look into it at all actually, so seeing the title of this was surprising. There was always people going in and out of the building - so I just assumed it was some kind of business that people worked at. Weird.
Apart from the whole visionary mumbo jumbo, I don't get how that business plan was ever supposed to be profitable. It's basically a glorified hipster cafe that does not charge people for overpriced drinks and food.
total con.
Even worse, the only things that appeal to the environment they were selling are already easily solved by just working from home. Nobody needs to hop in their car and drive to a building if they want to dress casually and eat whenever and wherever they want.
Also it is to raise consciousness from his new age wife
"we work from home" 2020
😂
🏆 for this comment
😁✌
Excellent
LOL!
Lol. They basically sublet office space. And people thought this was tech???.
Their true innovation was that they made subleasing office space cool and hip. Before, you got a tired cubicle that the landlord or leasing company barely put much effort or money into. WeWork turned the concept into a hip coffeehouse vibe.
Worth $47 billion? Not even close. Landlords and other subleasing companies simply need to copy the concept and cut out WeWork entirely. AFAIK, WeWork doesn't have a patent or copyright on the hip office sharing concept.
not just tech, but "high tech" lol
@@urbananalrapist Well there's companies like JustCo as well who seem to be doing alright. Don't they provide the same services too?
I agree, Wework is basically a real estate, developer company which leases office space to tenants under the guise of a tech company and an enigmatic CEO. Any developer or real estate company can build up the property and fit out according to tenant's needs. Having worked with developers they are a profit orientated bunch and are very cautious with their accounts and investment since no way they will get the ridiculous type of funding this Wework CEO seems to be getting.
I was waiting to hear what tech they created.....none
"No access to their numbers, no idea of their business model.."
Bruh, you went public. We literally have the numbers right here
after watching quite a few fraud videos like this one, I've realized the key is: when the CEO says you don't understand their business model, it is a fraud!!!! run!!!!
Lol at anyone that thought this was a tech company. A sucker is born every minute.
These new-age hipster companies rely on people not knowing what the fuck they do. "Creative inivative motivated goals of vagueness", plenty of companies never really explain what the fuck they sell and how much they sell it at.
Connor Downing Yeah that’s why its called a fraud. There are real companies like Enron that came unglued for selling a lie. This is what happened to We Work. It was complete BS.
donnie didn't die for this
I'd guess the idea of the company (and future profit) is not the "renting out office space"-part but the "collecting data from the ones working there"-part. As you might know: data is more valuable than oil nowadays. So "data" I believe is the reason to the label: "tech company".
exactly
WeWork: Shared workspace is the future!
Covid-19: Let me introduce myself
Oh I almost forgot about COVID, if the company had any hope of making a comeback, COVID killed it. Sad really I think the concept is pretty good, it's just not technology, it's still valuable but it's not something you would sell, it's more a culture, you can't sell culture.
@@MISTAKEWASMADE4live i think you can create & sell your own culture, Starbucks created a culture of people bringing their own cups to get their drinks, its just one of many examples on the market. I think Wework just failed at creating one for their audiences, and ofc,
covid.
@@kynbeo maybe they could come back and transition to a slightly different business model where the people would work from home and they would somehow charge them for a service like a video conference call or some shit like that.
Covid 19: Hold my beer...
Not only “hold my beer” but you had better be wearing a mask and be vaccinated when you do it. Crazy world we live in.
Just finished listening to "The Cult of WE" and the amount of times the book mentions them needing new investors in order to "keep growing"; made me check to see if I had repeated a chapter.
Here after the bankruptcy filing.
“School is run by Rebekah Newman, wife of Adam Newman and cousin of *Gwenith Paltrow* “ aight, imma head out.
When you roll a 18 for Charisma, and an 8 for INT.
Baffles me how bankers and tech community can be so smart, and yet still succumb to the power of the bard.
All of em are crazy!
"Im using crystal to transfer pure knowledge to the kids"
fuck u paltrow
@@lazysnorlaxcooks9107 Because bankers and the tech community aren't smart. They're dumbasses. They know financial theory and tech, sure. But they don't understand people. They don't know how to spot a fraudster, and they're too blinded by the promise of massive returns, they'll fall for any jackass who makes wild promises without any substantive answers.
I’m actually glad this happened, their ads were super annoying.
😹💀
IKR? I was thinking... "what is this ad trying to sell me?"
Get brave browser and you won't have that problem.
@@audie-tron9219 It was a TV add... not an online video.
What's a Tee Vee??
It's amazing that this channel has covered several billionaires/multi-billion dollar companies I've never heard of.
I think the concept would have been great if it also worked as an employment agency or freelancing agency. Like imagine if employers could guarantee that they could find proactively working professionals anywhere in the world working in a professional office with proper amenities (and security)...
Working from home is not for everyone. Sometimes you need to be mentally away from home to be in work/study mode. This could have been awesome.
Wework is your local library basically
Literally but with cost. Lol
Underrated comment.
with noises allowed
lol if want coffee go to starbucks
No, it's your library hiring some cooky, charismatic guy who is able to convince you to give him a bunch of money to visit your library that was otherwise free and because you were so stupid to do it, you do everything possible to convince yourself you gave your money to him for the right reason. That's what it's like.
These jerks bought up my local YMCA, tore it down, and replaced it with a big empty office building. Way to go.
@whizz1der It's really a shame, now where will they go when they're short on their dough?
@Boki It's like a combination gym and hostel, I don't think many of them run hostels anymore, it's more of, like, a community gym.
@Boki No idea, I imagine the YMCA appreciated the endorsement!
You mean your local YMCA sold their building to these jerks.
More likely that a commercial developer bought the land and built the building, with WeWork already signed up for a long lease. Part of the reason they are going down so hard is that they sublease buildings instead of owning their own.
"The WeWork story is so bizarre we can't even get outraged about it." I'm dying. xDDD
The whole playlist on your channel is a gold mine.
This is free and and I really appreciate it.
If they make a movie about this Ashton Kutcher can play himself.
A bunch of liberals can play themselves in this story.
Don't you mean Kevin Malone?
@@RJT80
I mean... Cancervatism and their love of neoliberal scum is the root of this systemic injustice.
@@RJT80 Ah yes, the liberals™
@@RJT80 Lol do you feel a pressure build up inside you when you haven't owned the libs in the past 10 minutes?
When i see an charismatic leader of a company talking purely emotive about his business i know not to invest
Swaying as he speaks is not entirely awe inspiring btw.
Well look at apple, certainly worked for them
Elizabeth Holmes has entered the chat.
wrong, its about to leave early enough
@@botleydot apple has appealing emotive vision and actual computer engineering and intellect that’s why you’re probably reading this on a iPhone.
I remember my cousin sharing with me the concept of WeWork a few years ago... I asked him how it made sense from a business perspective and all he could tell me was that it's like Uber for real estate... Which it really wasn't.
Mainly because they barely owned any of the actual properties... In essence they were subleasing to lettors beyond market value. Subleasing on short term is nothing new... It's literally something someone could negotiate with the landlord.
This wework was always a joke.
SUBLETTING as it's known has gone on for CENTURIES. My brother in law was doing it at the time and I was SCREWED to know how wework was EVER DESCRIBED as a tech company. Even the news here was referencing it as a tech company.
Let me get this straight. This company became worth billions of dollars for, providing office space. Like, that was it. Providing office space. That's crazy
This guy's literally Ryan from The Office
Why is this not the top comment
when they told about the useless meetings I immediately remember Michael Scott....but you sure have a point. He may be a mix of both chars
Lolol true
This guy spouting straight Fax 💯 😂
Except Ryan never made it. Adam is fucking rich.
500 euros a month for my very own desk. nice business model
😂
😂😂😂
And even with exorbitant high rental costs they still didn’t profit.
It seems like people who buy this sort of expensive temporary office space are trying to impress someone..but how impressive is it that your company operates out of a 'wework' temporary office?.
I'm in Bangkok and here, like everywhere i guess, we already had a bunch of these co-working space temp office places all around, usually a small business one-it serves coffee a few snacks and it has copy machines and conference rooms and co working tables other office things and it's not very expensive to use. There is also near me a starbuks and an aubon painthat have have a conference room with a TV monitor at the head, that just costs a few buks more than your coffees to use it for more than 3 hrs.. Then they opened some of these 'wework' places in office buildings that costs so much more.. I can't believe there would be enough customers that are willing to throw away money like that just to impress when working out of it does not impress anyways because how impressive is it that your company operates out of a temporary office?
@Reiner Haselhoff Yeah we speak English, sorry
now its filing bankruptcy
Why would anyone think this was a tech company? They were simply a landlord, and a landlord who didn’t actually fully own the spaces they were renting.
Moral of the story? Crime pays off and big CEOs can get away with all the money they stole from others with no jail time or to pay any kind of penalty.
This is no crime, the investors though they would get some easy money and they didnt. Neuman in the end employed thousands of people and payd evertly single one of them.
The gereed eand stupidity of investors was punished here and Neuman should't be punished for that.
@@RaMMeRaaR you know he was a douche from the beginning. He lied and took massive amount of money with him in the end with no repercussions. He isn't the only one. dont get me wrong i would love to see a fair and just system. You are good man seeing good in bad people i lack that talent.
@@besko2444 its your job as an investor to do due diligence, He didn't lie investors were stupid.
Capitalism owns
Idiots are easily parted with their money.
7:05 "Another financial crisis, or similar crisis where fewer people are willing to rent co-working spaces..." Boy did that worry ever come true!
🤣
yeah, we work is getting cucked
The first Covid cases are said to have happened in December 2019, so the situation that created the next financial crisis happened immediately after he said that! Talk about jinxing us lol
I almost had a heart attack when I heard that line and realized this video predates the pandemic.
@@MercerVerse Funnily enough, it's now believed to have been transmitting in humans as early as September '19, and possibly spread from China to Italy by the time the video was posted
The Pandemic exposing this guy instead of keeping him afloat is some kind of justice, even if at a huge cost. It's much better than just letting him be free of any blame for a continued period of time.
1:54 “it was hip”
Mr. Krabs: “It's hip! It's coral! It's... it's losing money!”
Calling WeWork a tech company is like calling Ford an aeronautical company.
Ford actually built an airplane, the Ford Trimotor.
Ford in fact did have an aeronautical company.
So I guess WeWork has a chance to realign itself.
en.wikipedia.org/wiki/Ford_Aerospace
Max Ant missing the point.
"I like the way alcohol brings people together" is just code for "I'm an alcoholic."
Sakura ShinRa it’s funny how ten years ago people would watch people on Mad Men and consider drinking in the office a novelty when over the next decade it slipped back into normalcy.
Like, people can do whatever they want in life but you have to consider the circumstances that explain why drinking before 5:00 makes sense
There's a hidden meaning here.
It's a well known thing for bosses and managers to entice their underlings to drink, get wasted and thus, become vulnerable to misdoings, saying the wrong things, divulging secrets and making themselves look like fools, especially when encouraged by said bosses (who will play "I'm just like you" card) or shills/agents, all of which is delicious blackmail material and can be very useful to create internal spies and subservient, scared workers.
Add to this a mood-swinging boss who is one day nice to you and says you did a great job and how valuable you are, only to tell you how badly you're doing and how there's 15 other people that could be taking your place any moment... creating a sort of stockholm work syndrome, where a worker is being abused like a battered wife/husband but remains in the workplace because the boss isn't always bad, just sometimes.
@Be Frank If you have to scheme to get employees drunk to find out what is going on in your business, you really fail at running the business. You'll only get dirt from the alcoholics using those tactics, anyway. Most people are not going to get drunk at a company function, even if the booze is free. You also create potential liability for the company by having unlimited free flowing booze available to employees.
Billy McFarland should have given us World Peace by that logic, instead he set it on Fyre.
@Be Frank lol btw you need to add the Coyote Ugly trick to your "system". Get a shot with a beer chaser, make sure brown glass. Empty beer out then when you take a shot spit it into the beer bottle. People will assume that you are plastered and will never remember anything.
“Dagogo” might be the coolest name ever.
When you think about it, Jared Leto and Anne Hathaway were born for the roles of the Neumanns. Brilliant casting.
I have never understood the appeal of the “open office concept”.
I know from my working days (I am now retired) that it is much easier and more productive to work in a private office where you are not distracted by other people sitting on top of you and having to try and block out the noise of telephone conversations and people walking about all around you.
When I was working and had my own office, when I needed to concentrate on a complex project it was much better to be able to close my door and block out distractions. Or when I needed to conduct a private conversation, either on the phone or in person, having a private office let me do that.
I think the main appeal of open office space is that it saves money for companies, not that it “allows for an open, collaborative work environment”. I mean, lets just be honest about it here.
For Freelancers who are dying of loneliness trying to work from home, having a space that puts them in touch with people AND seemingly semi-private enough to focus has a great appeal. I don't think the concept has proven itself in terms of productivity as yet.
@@MikeStedman Yes but "conscious" freelancers shouldn't waste 650+$ dollars per month just to not be alone (in a lot of countries that would pay for a fair amount of therapy). On top of that, the privacy of such places is highly disputable (you have to have a privacy-screen the whole time, avoid taking calls in the open space, etc.).
You don’t have to worry about distractions when everyone is on adderall
@@ShakeDaUniverse : I suppose that could be one solution - I’ve never even thought of that.
When I was working for my next to last company I was stuck in an open desk (it wasn’t even a cubicle) and what I did was buy a Sony Walkman (this was in 2003-04) and bought some New Age music on cassettes and listened to it on my headphones and it helped to block out the distractions and other invasions to my privacy at work.
some people like it. WeWork offers private offices as well.
When you roll a 18 for Charisma, and an 8 for INT.
Baffles me how bankers and tech community can be so smart, and yet still succumb to the power of the bard.
It baffles me that people with exactly 0% of experience handling high powered negotiations and high powered relationships think that their experiences are remotely close to what it's like to be in the upper class.
@ungratefulmetalpansy therapy. Hours and hours of therapy. If it wasnt that it would be alcohol (tried that, surprisingly didn't work). Luckily I found out talking is a easier method of evading the pain.
because it's all a scam. You hear people tell you to invest in the stock market...invest! invest! Get rich quick! yet all the REAL investors are buying gold, what does that tell you?? If you don't know...then go invest in the stock market.
@@DaleBouwman nah only old people who listen to talkshow radio invest in gold anymore, and only because the "buy gold now" advertisements are just thinly masqueraded fearmongering tactics (which really really work on old fucks)
Im thinking some of these bankers/investors are rather complicit than naive.
I never for the life of me understood how anyone could confuse what was basically a service sector organization that literally rented out office space as their primary source of revenue generation with a tech company.
We need an update of this after the covid 19 pandemic
"And cousin of Gweneth Paltrow" yes that checks out
Yeah, that is a red flag right there :-)
@@zapfanzapfan why?
@Random Dude If you have more money than sense and just want an over priced sex toy then fine, just don't take anything she sells seriously...
Random Dude Paltrow has transitioned from acting to being a snake oil salesman running an alternative “medicine” empire called Goop.
That smells like failure
Real Estate company valued as a tech company. Smart money should have known better
If an influencer can get in earlier, give validation to its investment by virtue of its brand and then get out at a later stage for profit, they'll do it. As long as the reward exceeds the risk.
exactly .... there was very little tech 😂 .... just a smart concept that got valued too high.
So many companies are doing this, selling itself as a tech company when their business models are incompatible with that. It's all for that sweet VC cash.
Tech companies overvalued too.
Hindsight is 2020
As a remote tech worker, I'd love to try shared office spaces, especially if they look nice and bring like minded people together...
But I'd never pay $650/month for it. I'm already paying for my house, and if I want to go out, there's public spaces like libraries, cafes, etc.
WeWork _should_ have been a workspace with a kitchen, cafe, and snack shop. Free entry, simply to draw in customers who will buy food and drink. They could have had private rentable conference rooms to earn a bit of money that way. Expand it into hotel-style accomodation, and it would draw in business travellers who need a good desk to work at. Could have been great.
At this point, I feel that whenever Softbank backs a project, it's time to pull out.
Lol 🤣🤣 they always making shitty investment decisions good track record too.
"Walked around the office barefoot"
I'd like to hand in my resignation notice
I'm applying straight away. I've worn shoes once in the last two years.
Hasn't been to new Zealand clearly
And works out in the office, then runs around sweaty? Hygiene, my dude! xP
"disgraced CEO"... still made out with Billions. Goddamnit...
That's how it works. I guarantee the company was never intended to succeed from his point of view. It makes all of his ridiculous actions make perfect sense.
Curse with you own father's name!
"This is America". Seriously. I hear russia, china, and korea are linking up these days, I'm kinda of not surprised, as a nation, how can we support people and companies that don't support us. America seems like a gigantic propaganda machine these days, and everyone in selling each other out, while taking selfies.
According to wikipedia, wework is still around and has 4400 employees. It boggles my mind why you'd need 4400 employees to rent out spaces and stock them with vending machines and air hockey tables.
Getting a Johnnie Walker ad right as the narrator talks about the CEO's use of alcohol at work retreats was a amusing coincidence
His wife admitting to being Paltrow's cousin is enough reason to distrust him in any business.
Damn right. That's literally all you need to know that you dealing with a bunch of kooks
Well said
Never trust pussy steamer buddies.
@Captain Chaos she wouldnt do you anyways, shes married to a rich dude bruh
Exactly...and that WeGrow nonsense...a bunch of oddballs...typical house of cards
2010: WeWork
2019: We'reFucked
John Wick How original 🙄
John Wick
Quality
2020: WeGrow...noWe'reFuckedAgain.
Employees at 2020: WeDon'tHaveWork
@@arcalter6075 Anyone remember Fuckedcompany.com? It was an anonymous website that allowed dotcom workers (I'm a former one) to comment on their employer's impending demise.
Never ever ever ever made a single profit and yet hailed as a cutting edge, brilliant concert. Ladies and gentlemen- the embodiment of hype.
I remember seeing so many ads for this thing and I can't believe they're actually going to go out of business.
Dude, I called this the very first time I'd ever heard about WeWork and what they were about. I was like, "Who the hell is going to pay money to rent a single desk in a shared office full of strangers when Wifi at Starbucks is free? And if you're really a self-employed person, wouldn't it be more economical to invest in your own home office? Who would pay money for this?" And...I was right.
Cool. Trouble is, it’s hard to monetize predicting the failures-to-be (in startups at least). It’s the future _successes_ you’re after. Got any tips on that front? 😉
I'm with ya, Courtney. We had and still have multiple WeWork style establishments here in Denver, CO. This isn't a case of, "of course it's easy to say they were doomed in hindsight." because many of us could tell from the outset that the model was flawed. Particularly due to the pieces of real estate being leased. VERY expensive buildings in city centers and tech hubs. Add to that elaborate remodels and finish trappings. What a mess.
Baked Utah short selling monetises failures to be
sophia sini, yup. Hence my _”in startups at least”_ caveat 😉
I've never used Wework but I do pay for a co-working space. It actually works for me because I have a toddler and it's impossible to work from home. We don't have a closed off office at home. A few times a week my husband takes over so I can get some meaningful work done. I'm also able to take client video calls in a private room that I know will be quiet and professional. My space is $250 a month and offers everything wework does.
So he grew up in communal living which inspired him to be a greedy, ruthless CEO?
The fact that his name is ADAM explains a lot of how he became such a conniving narcissistic thug!
Who knew communists were so authoritative?
@@scottydu81 He's clearly a ruthless and dishonest capitalist who took advantage of our system and his own company.
Communal design was what they were advertising, it was the selling point of their office space, but this was a capitalist business based on real estate renting.
He grew up in communal living which is why 5:09 he thought using tech makes them a tech company and why 12:18 wasn't a problem. (I could be wrong about the communal living situation in Israel, but when I hear communal living, I immediately think: hippy.)
Being greedy and ruthless made him a CEO. Like Elon Musk, he has discovered that kind people are easier to lie to and take advantage of so he markets himself as a kind person to employees, 4:00 renters, and 'hey we are kid friendly!' all while 11:17 actually being willing to fire 7% of his employees and then force the remaining employees to drink like a pirate captain opening a barrel of rum after forcing the mutineers to walk the plank.
@@scottydu81 communalism isn't the same thing as communism
I’d like to see more stuff about financial scandals. You’re really good at those and I want to see more.
WeWork: Boring offices are a thing of the past! We offer comfortable spaces that make you feel like you're working from home!
Covid: Funny you should say that ... 😁
Never get excited over a company that calls itself a "tech company" if it doesn't actually produce software or tech hardware. We Work is a real estate company, just like Uber and Lyft are car services.
Uber and Lyft are somewhat different in that they don't actually own or lease the cars in their own name so most of their value is in the technology. I also suspect they made a somewhat bigger change relative to pre-existing taxi services than WeWork made relative to pre-existing real estate services.
seneca983 yeah before uber. Only way to get a taxi was ring em, and cash in hand. Also, if u had a taxi, you’d have to pay £400 a week for the meter and £400 a month for the taxi licence.
Uber and Lyft produce software.
When they don't understand the design of the Unber Complex and systems 😂
@@Casey_Bass When they don't understand the name of the company 😂😂😂
Within seconds, I said out loud "This is not a tech business"... I can't see how anyone would give him a dime. He was given billions just so he could pretend to be a legit business.
It’s the Elizabeth Holmes business model!
Literally just a landlord.
Your Facts research and narration are superb!
I like when you especially cover about billion dollars story!
How can someone walk away with 1.7B with a scam. He should be in jail.
I work in finance, within the real estate sector and this was such a weird saga to watch. I remember asking so many times why people were going nuts about WeWork when it was effectively buying up some of the lowest-yielding properties in the world.
I thought they were like a an airbnb but for workspaces but I was proven wrong.
Buying? I thought they were leasing.
@@brucetrappleton6984 apologies, you're entirely right - their primary business model was to sub-let, which again raised massive questions. I don't see how this was viewed as some kind of new-age concept!
@@DdotRay86 exactly. As someone else said somewhere, people do that in Starbucks and in the local library without paying a penny. It’s extremely dependant on the ups and downs of the economy while the business is locked in in a maybe 4 years lease? The risks are enormous.
@The market can be a weird and bizarre place, where people invesnt in castles built in the air.
If there's anything this channel has taught me it's to never trust a CEO who responds to doubters with "you don't know what you're talking about; stop hating on someone else's business"
Same principle applies to their true believers that attack any question regarding their hero/icon.
I learned more from this 19 minute video that I did from the hour and a half Hulu documentary. Well done.
"The #1 casualty of the WeWork disaster is Masayoshi Son..." Disagree completely. The #1 casualty was all of the WeWork employees who slaved away in a toxic work environment, underpaid and overworked, and then ultimately were left with nothing. Masayoshi Son may have lost billions, but he had billions to lose. He is hardly a victim in this story.
Oh.... UNDERPAID AND OVERWORKED you say? You knew they had a guy to hand you wet towels in the bathroom on 19 BUCKS AN HOUR? You know they had ANOTHER company to water the office plants and a wework employee would follow them around watching them water plants for a couple hours a day? Probably on 19 bucks or EVEN MORE? Oh.... do HARD, so UNDERPAID, so.....
FFS I work in absolute CHAOS some days, only been a casual a few months at this company and I have literally opened the building up and RAN the damn warehouse organising other employees and running according to instructions and papers left all over a desk. Have any of these wework employees been expected to run a whole warehouse with NOBODY above them in the place only WEEKS after starting there? I'm meant to just be a ground level employee FFS.
@@OffGridInvestor Still not feeling bad for a billionaire losing billions and still having billions tbh
@@OffGridInvestor projecting hard.
My hope is that the former employees filed lawsuits and won them. Went through the exact same thing with my previous office job and throughout 18 months, I went through burnout, exhaustion, depression, PTSD and I got both SA'ed and SH'ed (assault & harassment) before getting fired. I rebelled. I spoke out. I was angry and on edge all the time and between the perpetual tension, the turn-over rate was crazy and spellbinding. I have two college degrees, graduated with Honors twice and am now working toward an MBA as journalism doesn't seem to cut it nowadays and never in my life have I ever went through anything that traumatic, career wise.
I decided to file a lawsuit and it's about to go down for them. A toxic workplace can kill you. It actually killed someone in that place.
@@OffGridInvestor class consciousness; you need it.
Neumann should be sued. He basically funneled company money to himself.
What else is new?
Sounds like every other failing startups with no future.
Square.Com is another start up that's funneling investor's money into the pockets of the company's founders. I've personally known some of them and they are living high on the hog buying up condos tight and left. in fact, over 90% of the start ups in the San Francisco area are nothing but Ponzie Schemes.
@@kansasthunderman1 schrodinger's company should be a fitting title
Lmao buying properties then having wework rent them out from you what a scheme
I love how PolyMatter predicted this almost a year ago
Also remember this video but date is 01-02-19....
EU time spec
Tbh a lot of analysts saw this coming miles away.
Anyone could have predicted this that would just analysed the buisness model instead of listening to the salesman.
I live by a couple wework spaces, they seem to always be empty, i always wondered how they kept their leases. then they went ipo just thought maybe it doesn't work here, but then i realized this is a ipo dream, until it isn't. rich people love to think they worked for their money, you sell them on what special cupcakes they are in the money comes in. while the rest of us just see the obvious -- why pay for something that starbucks, etc. already offers for the price of a coffee.
@@Gee-xb7rt What?
Great work, again. We should have an updated version of this, in light of the CV crisis that forced most of us out of the office and into WFH in early/ mid 2020. I presume that nailed the coffin for WeWork for good
I’m a working creative (freelancer/contractor) and I knew from day 1 wework would fail. My discord channel of freelancers were laughing our asses off. Why would we commute to a city wasting time and gas to pay rent to work there when the whole glorious purpose of freelancing is enjoying free spaces like coffee shops for meetings and the comfort of our own home offices?
Newman is like a GTA 5 character . He is a parody of a “tech” CEO
Yeah, Newman did walk away with almost 2bn USD so wework worked for him, shame his employees got screwed.
John Spencer his employees still got paid tho?
@@Darkest_matter I would say three things - 1 - Many of those who took jobs with Wework started work on the basis the company was going to float and their shares would be worth a lot of money. These options are now worthless. 2 - Getting your ass fired is very disruptive to your life and extracts a heavy toll. Even if it was not your fault. 3 - Watching your ex-boss walk away with the guts of 2bn USB for failure cannot have been a good feeling. So yeah they were paid for their time but I think it is a bit harsh to say that is all there is to the matter.
@@extramild1 Not now softbank not paying him billions, and now he is sueing softbank.
@@inw527 Yeah - I thought it was a very generous deal on Softbank part considering there is a chance Wework is worth nothing. I am not surprized when the saki wore off Softbank pulled out.
*Covid cracking it’s knuckles: “I’ll take it from here”
Go get 'em!
hahaha. Dayum. I feel so sorry for them especially their employees.
Lmaooooo
"Fine. I'll do it myself."
Looooove your comment!!!!!!
Very well researched and thoughtful, very happy to be a new subscriber!!
I have no idea how such a company could be called a "tech" company. The stuff they did was something any company renting office spaces would do...
"...and Gwyneth Paltrow's cousin"
And I goop-
Shocking! But his accent makes him a creative mogul!
Ya know. I both hate you and respect you for that joke
@@elvingearmasterirma7241 thanks. I hate it too
It's a tiny world, isn't it? All becomes easier when you are well connected...
HAHAAHAHAH
This guy orbits Elizabeth Theranos' planet of delusional people
What is most alarming to me are the people that jump on the bandwagon.
Advance System 21, Inc.
time and time again it was proven that investors fell
For people with appealing esthetic, charismatic eloquence and very high self esteem.
This is not true that all people with these quality are crooks, but proven that almost all the crooks caught in those high stakes financial scam fit the profile.
he's much smarter than that. he had a plan to spend and pocket investor money right from the start. his exit means he no longer has to work and can now spend the money he has stashed over the years openly. elizabeth was really delusional. she thought she could be a tyrant billionaire like her idol steve jobs since she was young. she never sold any of her ownership of theranos when the valuation was at the highest and she didn't have a working product. she somehow thought if she lied long enough, she would have something to show investors and the public one day.
@@XavierAncarno Your point is well taken.
I've been to numerous startup & tech events, accelerators, and pitches. There are a lot of smart & brilliant people. But there are also plenty of arrogant sociopaths & narcissists who think their startup will Make The World A Better Place, and they'll be the next Bezos or Zuckerberg. Behind the cool open-plan desks, the kombutcha tap, pingpong table, greenwashing and plastic 'wokeness' you may find a house of cards run by a Billy McFarland clone...
Only in America can a guy destroy a company, cause thousands to lose their jobs, and still walk away with over a billion dollars.
Sounds like Neumann didn't understand his own business.