How WeWork plunged from almost $50 billion in value to nearly worthless

Journalists Eliot Brown and Maureen Farrell discuss the rise and fall of workspace company WeWork in their new book "The Cult of We: WeWork, Adam Neumann, and the Great Startup Delusion."
4:58 | 07/22/21

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Transcript for How WeWork plunged from almost $50 billion in value to nearly worthless
We turn to an incredible story of the national poll rise an epic on ramblings. Of the communal workspace company we work along with its charismatic founder and former CEO Adam Newman. The company was one of the hottest startups in history than it plunge from nearly fifteen billion dollars in value basically worthless in just six weeks. Joining us Snyder Wall Street Journal reporter's Elliot brown and Maureen Farrell. Altars of the just released book the colts of week we work Adam Newman and a great start up delusion thank you both for coming on the show tonight. Thank you drowning us. So the company we work provides office space or remote workers and businesses but at its height it profess to be so much more and with the support of investors and venture capitalist. It was once valued at 47 billion dollars won't appeal before things went so sideways. I'll start around indicated. How does this CEO we just have this magic equality. Being able to I had it to say he taught investors to look at a pigeon and cius warrant and he yet a real estate company but was able to Whitman was very clearly and office space leasing company but he was able to convince the investment world and Smart name's Aaron bash it was a disruptive. Company unit should be considered like amber and Caribbean beat. You know and it's an extremely different and less valuable company a real estate and business has opposed this. Look at KG infant CS wanna love that analogy there. Maureen next one for you you've talked about we work being example of of too much money in no guard rails can you explain. Shore so their system there's so much capital out there. Was it being an in your retirement funds like indelibly in your eyes are suddenly getting the cry that marquee team that. Putting money and searching the next Isa or Google. Added Yemen part of his mastery raising Israeli action as saying that he was gonna build this next giant. Company. So investors were reaching give him money and ultimately raise more than ten billion dollars. And investors were so scared we have a lot of and that's home you're missing out. We just let you know you your credit don't want let me see money at this the Communist rounds seniors. Many can't get around outside and many people reading too. Money can. Recent under the weight I was part of this fundraising and a guardrail and ever coming up. But it worked. Four a short amount of time megas in the long scheme run eight has also right along a lot about Adam humans excessive over the top lifestyle or what were some examples of that. T he would have disliked cell where he had eight homes in his life Danish one this summer before everything felt they also rented X three other additional Caribbean he's in the Hamptons where they're staff stated to have his entourage that included search coach to certain coaches family and essar which is nannies. Hairdresser so there's a lot that way and may come you know he loved private jets love surfing you don't Maldives they're yachts are. I'm didn't do they were not black there are novel a lack of spending life. And Maureen what do you learn and from what happened which we work with regard to start Epson and the cult of personality people like Elizabeth Holmes an out of new lynch people were built up to be something. That they may not be. Basically there is this whole around challengers and it Meeks investors and any other people who should really be advisors to these people. Instead just let them how are incredibly long leash is late sanctioned great aunts. So I think just how many ending rent slacks a red flag and founder takes our money and think out of the company and other investors out. Sell shares as buying homes like this. And there are other proper governance practices that you know there are red flags and red flag and investors in bowl and he were willing to overlook them to the pro. Promises that that these people who meet. And Elliott last one for you out of new mini is no longer in charge and we work is hoping now for a second act what does that look like and what's the lasting impact of this company although the real estate industry. Yes so after everything sort of fell apart and in 2019. B I we're electrical outlets value but they did have a lot of office space so now because of the pandemic have a lot of empty office space and I you know they're hoping is bash. Act as everyone goes back to the office the world will sort of shift students tantamount to space stage they offer which it is zionists a little boring but it it's flexible so you sign a one year lease or a month lease Houston at a ten year lease and the hope is that a lot of us companies will want that because who knows what's happening cause and Ambac. Elliott crown Maureen Farrell thank you so much for your time the cult of we is available wherever books are sold. Well thank you.

This transcript has been automatically generated and may not be 100% accurate.

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