Embattled co-founder and CEO of WeWork Adam Neumann is reportedly leaving following a rocky tenure that has been plagued by allegations of outrageous conduct, including alleged drug use and his copyrighting of the word “We” which he charged his own company to use.
Perhaps Neumann’s biggest transgression has been his handling of WeWork’s delayed initial public offering, with reports swirling in recent days that the company is considering drastically cutting its valuation.
The Wall Street Journal first reported Tuesday that Adam Neumann has been forced to step down and cede control of the shared-office-space company. The report, which cited anonymous sources who are “familiar with the matter,” said Neumann will take on the role of non-executive chairman.
A separate report from CNBC quoted a statement from Neumann: “While our business has never been stronger, in recent weeks, the scrutiny directed toward me has become a significant distraction, and I have decided that it is in the best interest of the company to step down as chief executive.”
CNBC reported that SoftBank chairman Masayoshi Son, who has invested billions of dollars in WeWork, led the effort to oust Neumann.
Neumann co-founded WeWork in 2010, helping to turn the start-up into a millennial-focused juggernaut. But reports have depicted him as an erratic leader who engaged in bizarre behavior more suited to a frat house than a public company.
The Journal reported that Neumann was once forced off a private flight after crew members found a cereal box filled with marijuana.
Neumann also reportedly received $5.9 million from WeWork for use of the word “we” when the company rebranded itself as The We Company in anticipation of the IPO. He eventually returned the money following widespread criticism.
WeWork delayed its IPO in September after tepid investor response.
Reuters reported the company may seek a valuation between $10 billion and $12 billion, down sharply from the $47 billion valuation it achieved earlier this year.
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