Adam Neumann net worth
Number of divisions: 14
What is Adam Neumann’s net worth and salary?
Adam Neumann is an Israeli-American businessman and entrepreneur with a net worth of US$1.5 billion. Adam Neumann is known as the co-founder and former CEO of WeWork. WeWork is an American company that provides co-working spaces and related services for entrepreneurs.
Adam Neumann and Miguel McKelvey co-founded a company called GreenDesk in Brooklyn, New York in 2008 as an environmentally friendly co-working space. The two sold the business in 2010 and used the proceeds to launch their next business, WeWork. WeWork, which will eventually be called “we”, rents out public rental space at a price as low as $45 a month, and has developed into a multi-billion dollar business. WeWork has raised billions of dollars of investors such as JPMorgan Chase, Goldman Sachs, SoftBank and Benchmark Capital. The company was once expected to go public at a valuation of more than 80 billion U.S. dollars. Instead, it imploded and Neumann was forced to leave the company.
Wealth evaporation and return
At the peak of his career in mid-2019, based on a private valuation of 47 billion U.S. dollars, Adam’s net worth of personal book assets exceeded 4 billion U.S. dollars. If the company achieves the expected public valuation of US$8-100 billion, Adam’s value may be as high as US$900 million or more. Unfortunately, after the exposure of Adam’s profligacy, mismanagement, and general weakness in company operations, WeWork’s IPO and the entire business collapsed sharply.
Even after everything fell apart, in October 2019, SoftBank, WeWork’s largest investor, agreed to buy US$3 billion worth of company stock to save the company. From this investment, approximately US$1 billion was assigned to Adam personally. The transaction has been subject to extensive scrutiny. For someone who has caused such a big loss to employees and investors, this is seen as an overly generous golden parachute. This $1 billion windfall allowed Adam to maintain his status as a billionaire, with a personal net worth of approximately $1 billion (after tax).
On April 2, 2020, SoftBank announced that it would completely withdraw from the transaction. Last month, due to the spread of the coronavirus, the entire world, especially the real estate industry, was hit hard. By withdrawing the US$3 billion in cash injection, Neumann personally lost US$1 billion. Subsequently, he also lost his status as a billionaire, and his net worth fell to about 400 million US dollars.
Neumann sued SoftBank, and finally reached an agreement, which will receive about 700 million US dollars in compensation-he obtained a one-time cash settlement of 106 million US dollars, and was allowed to sell shares worth 578 million US dollars to the bank.
In October 2021, WeWork finally merged into a listed company through SPAC. If the combined company’s share price remains above US$12, Neumann has a chance to receive a bonus of approximately US$250 million. In addition, he also owns approximately 48 million shares of this newly listed company, valued at approximately US$8 billion on the day of listing. At that level, approximately 8% of Adam’s shares are worth US$720 million.
Valuation
In 2018, WeWork accepted an investment from SoftBank and valued the company at US$47 billion. At that time, Adam’s 10% stake in the business was valued at $4.7 billion on book. In August 2019, the company announced plans to publicly issue shares, and they hoped that the company’s public valuation would be between US$4 and 60 billion. The documents that the company submitted to the US Securities and Exchange Commission at the time of filing were widely ridiculed as illusions. Within a few weeks, the company lowered its planned valuation target to $20 billion. Some analysts believe that the company’s value is only half or less, possibly as low as $3 billion. At that level, the value of Adam’s shares in the company will reach 300 million U.S. dollars, a far cry from more than 400 million U.S. dollars a few years ago.
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dispute
In the course of several large external investments, Adam cashed in personal stocks worth hundreds of millions of dollars while still maintaining approximately 10% of the business shares. At the time of writing, he has cashed $700 million. On the same day as the cash withdrawal, Adam signed a purchase agreement with the buildings, and he immediately leased the buildings to WeWork. He also registered a trademark for the word “we” and sold it to his company for $5.9 million. A September 2019 article in the Wall Street Journal disclosed a series of suspicious practices by Adam and his wife Rebekah Paltrow Neumann. This approach is like smoking a lot of marijuana on a private plane leased to Israel, so that the owner recalled the plane after discovering it, leaving Adam and his companions stranded. The report also detailed Adam and Rebecca’s large expenditures on unrelated businesses, such as Bochi and day care. Rebecca Paltrow Neuman is the cousin of Gwyneth Paltrow.
On September 24, 2019, We’s board of directors announced that Adam would be removed from the company’s CEO position.
In October 2019, it was reported that SoftBank had agreed to acquire Neumann’s remaining shares in the company for US$1.7 billion. According to reports, SoftBank also agreed to pay Neumann US$185 million in consulting fees. If the deal is passed-there are already many lawsuits-Neumann will eventually become a billionaire.
Personal residence
At their peak, Adam and Rebecca owned a US$35 million home in New York City, a 60-acre property in Westchester County, New York, a US$22 million home in the Bay Area, and a home in Hampshire. Dayton owns two mansions. Their personal real estate investment portfolio was once worth at least $90 million. According to reports, most of the real estate was purchased with a large mortgage backed by his shares in WeWork. It is not clear if and how Adam will be able to maintain his investment portfolio.
He eventually sold the Bay Area mansion, one of their Hampton residences, and the estate in Westchester County, New York, for $22.4 million.
In June 2021, Adam spent US$44 million to purchase two side-by-side properties in Miami Beach.
