I went to Wild and Wonderful West Virginia for a week earlier this month. Rented a cabin in the western part of the state with limited wifi and no cellular service. It was delightful. I sat on the front porch swing and lounged in the hammock, and visited towns that were sort of nearby for antique shops, wineries, etc.
While lounging around, I read a recently published book The Cult of We: WeWork, Adam Neumann and the Great Startup Delusion. It was very well done. But it didn’t really answer the questions I had about WeWork, unless I just chalk it all up to literally being a cult. Which may just be answer, I guess.
To back up, when WeWork was in the news in 2019 because it was going to go public, I would occasionally chat with an acquaintance about the financial media attention it was getting. He was skeptical of a bunch of startups, including Airbnb, Uber, Lyft, and WeWork. I sort of got the business model of the first three – they don’t own the product, they own the software that organizes and the reputation – but WeWork made no sense to me, and we both agreed: how was it a tech startup? How was it any different than other office rental companies? We assumed smarter people than we were could answer that. Or not, as it turned out.
I kind of hoped the book would provide a better answer about WeWork as a phenomenon and spectacular (from my perspective) bust; certainly it provides a more in depth answer. But really, it comes down to grifters gonna grift IMO. At least, that’s the impression I get from the book about Neumann (and Mrs. Neumann, who comes across as possibly the biggest Karen I’ve ever encountered on the page).
That WeWork is now going public, two years later and at a much lower valuation via SPAC rather than direct IPO…I don’t know. The deal is public (see the filings for BOWX at sec.gov’s EDGAR) and it hasn’t closed. I don’t get it. But I don’t have to. Good luck to the WeWork true believers…