WeWork’s Rise and Fall: From a US$47 Billion Valuation to Bankruptcy, and Back

WeWork India keeps signing large managed offices Reported

In early September WeWork India announces a managed-office deal with Cognizant in Chennai and plans for a 10 MWp solar power plant in Karnataka to supply its centres. Large, long contracts with big companies, rather than single desks for freelancers, now drive the Indian business.

WeWork India reports a ₹179 crore profit Official

In its first full year as a listed company, WeWork India reports revenue of ₹2,477.4 crore, EBITDA of ₹499.2 crore and a net profit of ₹179.0 crore for the year to March 2026. It runs 76 centres in eight cities with about 127,000 desks, 110,000 members and portfolio occupancy of 86.9%, and its net debt turns slightly negative.

WeWork says it is EBITDA-positive and targets an operating profit Reported

Chief executive John Santora says WeWork has been EBITDA-positive for three consecutive quarters for the first time in its history, was slightly cash-flow positive in the latest quarter and aims for an operating profit by the end of 2026. Members rise by about 20,000 to roughly 550,000. WeWork also launches WeWork Go, one- and four-person glass work pods for airports, hotels and convention centres.

WeWork India lists on the NSE and BSE Official

WeWork India Management, majority-owned by Bengaluru’s Embassy Group and a separate company from WeWork Inc., completes a ₹3,000 crore IPO that is entirely an offer for sale: about 3.5 crore shares from Embassy and 1.1 crore from a WeWork Global affiliate. The issue is subscribed only about 1.15 times; the shares open at ₹646.50 and close the first day about 4% below the ₹648 issue price.

Why it matters: six years after the US IPO failed, the WeWork brand reached the stock market through its Indian licensee, not through the parent.

One year after bankruptcy: smaller and EBITDA-positive Reported

A year after emerging from Chapter 11, WeWork reports positive EBITDA for six months, no funded debt and plans to spend US$80–100 million refreshing locations in 2025. It has around 170 locations in North America and now favours management agreements and large enterprise deals, including managing close to 1 million sq ft for Amazon.

WeWork emerges from Chapter 11 Official

WeWork completes its restructuring in the US and Canada and names John Santora, a veteran of property broker Cushman & Wakefield, as chief executive; David Tolley steps down. About US$4 billion of debt has been eliminated, around 170 locations exited and about 190 leases renegotiated, with rent savings reported at roughly US$12 billion over the remaining lease terms. Yardi affiliate Cupar Grimmond owns about 60%, SoftBank affiliates about 20%.

Court confirms the restructuring plan Official

The bankruptcy court in New Jersey approves WeWork’s Chapter 11 plan after deals with landlords, lenders and SoftBank. Cupar Grimmond provides a reported US$337 million of new money for majority control. The existing shareholders, who had bought into a US$9 billion company less than three years earlier, are wiped out.

Adam Neumann tries to buy WeWork back Reported

Neumann, now running the residential start-up Flow, makes an offer reported at more than US$500 million to buy WeWork out of bankruptcy, with financing backers that are not fully identified. WeWork’s advisers say the bid lacks detail, and the company proceeds with the Yardi-led plan instead.

WeWork files for Chapter 11 Official

WeWork Inc. and certain subsidiaries file for Chapter 11. The case covers the US and Canada; locations elsewhere and franchises such as WeWork India continue outside it. Holders of about 92% of WeWork’s secured notes back a restructuring support agreement, and the company asks to reject leases at dozens of largely non-operational locations. Its stock market value by then is under US$50 million.

Why it matters: Chapter 11 lets a tenant walk away from leases, the one cost WeWork had never been able to cut fast enough.

“Substantial doubt” about survival Official

Three months after chief executive Sandeep Mathrani leaves, WeWork warns there is “substantial doubt” about its ability to continue as a going concern, citing losses, member churn and weak office demand. A 1-for-40 reverse stock split in September keeps it listed, and on 2 October 2023 it skips interest payments, starting a grace period that ends in bankruptcy.

WeWork goes public through a SPAC Official

Two years after the failed IPO, WeWork lists on the New York Stock Exchange under the ticker WE by merging with BowX Acquisition Corp., a deal announced on 26 March 2021 at an implied enterprise value of about US$9 billion, below a fifth of the 2019 peak. The shares open around US$11 but slide steadily as losses continue: US$4.63 billion in 2021.

COVID-19 empties the buildings Official

Sandeep Mathrani, a mall-industry executive, becomes chief executive on 18 February 2020 and begins cutting staff and exiting buildings. Weeks later lockdowns empty offices worldwide; occupancy falls to roughly half by the end of the year. In April SoftBank cancels the US$3 billion share tender promised in 2019, prompting a lawsuit from WeWork’s board special committee, settled in 2021. In July WeWork closes its first ever location, 154 Grand Street. The net loss for the year is US$3.83 billion.

SoftBank takes control Official

SoftBank announces a rescue: US$5 billion of new financing, a tender offer of up to US$3 billion for existing shares and the acceleration of a US$1.5 billion warrant, taking its economic stake to about 80%. The deal reportedly values WeWork at about US$8 billion before the new money. Neumann gives up his voting control in exchange for a package reported at about US$1.7 billion.

Neumann steps down; the IPO is withdrawn Official

After the listing is postponed in mid-September and reports of Neumann’s erratic behaviour pile up, SoftBank and other directors push him out. On 24 September he steps down as chief executive and becomes non-executive chairman; Artie Minson and Sebastian Gunningham become co-CEOs. On 30 September WeWork formally withdraws its IPO registration.

The S-1 goes public, and the story falls apart Official

The public prospectus shows revenue of US$1.82 billion and a net loss of US$1.93 billion in 2018, and a loss of about US$900 million in the first half of 2019. It also reveals Neumann’s 20-votes-per-share stock, loans and leases between WeWork and buildings he part-owned, a US$5.9 million payment for the “We” trademark and roughly US$47 billion of future lease obligations. Its “community-adjusted EBITDA” is widely mocked.

WeWork confidentially files for an IPO

The We Company says it has confidentially submitted a draft registration statement to the SEC. Confidential filing lets a company prepare its listing without publishing its accounts. The public S-1, and the scrutiny, only arrive in August.

US$47 billion, and a new name Reported

SoftBank invests US$2 billion at a US$47 billion valuation, far below the roughly US$16 billion it had been reported to be planning before its own investors objected. WeWork renames its parent The We Company, covering WeWork offices, WeLive apartments and WeGrow schools.

Manhattan’s largest private office tenant

WeWork becomes the largest private office tenant in Manhattan and signs leases around the world, at times opening several locations a week. Revenue roughly doubles to US$1.82 billion, but the net loss more than doubles to US$1.93 billion: each new building costs millions to fit out before a single member pays rent.

SoftBank arrives with US$4.4 billion Official

SoftBank and its Vision Fund invest US$4.4 billion: US$3 billion into WeWork and US$1.4 billion into new WeWork companies for China, Japan and the Pacific, valuing WeWork at about US$20 billion. Masayoshi Son reportedly urges Neumann to be “crazier”. The same year WeWork enters India through a licence with Embassy Group, opening its first centre in Bengaluru.

Into Asia, and a US$16 billion valuation

WeWork raises money at about US$16 billion, opens in Shanghai and Hong Kong, and launches WeLive co-living apartments on Wall Street. In January Neumann meets Prime Minister Narendra Modi in New Delhi during the Startup India launch.

From New York start-up to unicorn

WeWork opens its first location outside the US in London in 2014 and its valuation climbs from about US$1.5 billion early in the year to roughly US$5 billion by December and about US$10 billion in 2015. Neumann pitches it as a “physical social network” rather than an office landlord.

WeWork opens in SoHo

After selling their Brooklyn coworking business GreenDesk (started 2008), Adam Neumann and Miguel McKelvey found WeWork and open one floor at 154 Grand Street, SoHo, with glass-walled offices, shared lounges, free coffee and beer. Freelancers and start-ups fill it quickly, and the founders begin leasing more buildings.

Why it matters: the product, a ready-made office on a short contract, was good. The financing model built around it was the problem.