As the fallout of WeWork being bailed out played out in the public eye it was obvious that there were tremendous problems at the company. But this article really goes into detail to show the true dysfunction that existed.<p>I mean a CEO that skipped board meetings entirely? An entire board that basically sat quietly as valuations grew ever further out of touch with reality and that the first time they brought it up as an issue was already after the failed IPO had been halted, really is something straight out of an episode of Silicon Valley on HBO.
Why does the article say, "It was a watershed moment for Silicon Valley"? WeWork was started in NY, has a bunch of facilities in SF but in SV just one in RWC.
Why isn't the DOJ looking into him? He should be brought up on charges just like Elizabeth Holmes. There has to be a clear fraud cause in here somewhere.<p>He can't be allowed to get away with what he has done, he needs to be stripped of his money and spend some time in jail to act as a deterrent for others who would seek to do the same.
> In late 2015, WeWork was completing an investment round led by Beijing-based Hony Capital Ltd. that pushed its valuation to $16 billion. Mr. Neumann invited its CEO, John Zhao, to a party at 110 Wall Street, where WeWork was about to open its first WeLive dormlike apartment building. Toward the end of the night, Mr. Neumann led others to the roof of the 27-story building. There, guests passed around tequila shots. Mr. Neumann picked up a fire extinguisher and set it off, spraying Mr. Zhao and others with white foam.<p>> The deal went through. Mr. Zhao joined WeWork’s board in July 2016.<p>Spraying potential investors with a fire extinguisher... now there's a fundraising technique I won't be trying.
> The sixth floor of its low-slung headquarters was redone, with a large section just for executives, including an exercise room.<p>Building an executive oasis in the office probably counts as some kind of warning sign. Departure from reality.
What I find the most depressing in this saga is that all the people mentionned are now sipping champagne from their 5 star hotel room. All are billionaires/millionnairs thanks to a fraud. While good/normal/working people are just trying to pay their bills.
How do you build a society where lying/cheating/bullshitting is more valuable to the community than working ?