NEW YORK - WeWork co-founder Adam Neumann has started talks with board directors and investors to discuss his future role, including the possibility of giving up his title as chief executive, at the U.S. office-sharing start-up, people familiar with the matter said on Monday.
Were the talks with Neumann to lead to a resolution, they could avert a showdown between SoftBank and one of its biggest investments. We Company postponed its initial public offering last week following push-back from perspective investors, not just over its widening losses, but also over Neumann’s unusually firm grip on the company.
One possibility that Neumann is discussing is transitioning to a chairman role, the sources said. Details of the discussions and what Neumann would request in exchange for giving up his CEO title could not be learned. We Company is considering slowing its expansion so it burns through less cash and would therefore require less funding in the absence of an IPO in the near team, one of the sources said.
However, SoftBank also has leverage. It could choose not to back We Company’s IPO or provide it with more funding. It has already funded the cash-burning start-up to the tune of $10 billion and was discussing committing another $1 billion to the IPO.It is not uncommon for founders of fast-growing start-ups to be eccentric and control their companies tightly, even as they seek to attract stock market investors.
so it's like a Starbucks without the homeless people?
A dangerously insane individual.
How does this company get so much air time?
Thanks for the headline Elmer
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