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Office leasing company WeWork files for IPO, but it kinda seems like maybe it's just a ponzi scheme?

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WeWork's Adam Neumann will reportedly get a $1.7 billion deal to step down from board


Former WeWork CEO Adam Neumann will get about $1.7 billion to walk away from the company and give up his voting rights, The Wall Street Journal said Tuesday morning. SoftBank will pay Neumann $1 billion for his shares, a $185 million consulting fee and will offer him $500 million in credit to help repay his loans to JPMorgan, according to the report.


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So the company's valuation goes from $47B to $7B in the blink of any eye as soon as everyone gets a rough overview of their books, books that show that they're on track to lose $1.8B this year alone. So what do you do with the captain of ship sinking so fast? You play him $185M in cash, give him a $500M line of credit, and $1.5B in equity in his seemingly worthless company.


Maybe his grift didn't make him one of the richest people in the world, but I'd still call it a success.

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