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The Next Big Idea

CULT OF WE: How WeWork's CEO Vaporized $40 Billion

The Next Big Idea

Next Big Idea Club

Science, Society & Culture, Social Sciences, Education

4.41.3K Ratings

🗓️ 11 August 2021

⏱️ 58 minutes

🧾️ Download transcript

Summary

Adam Neumann, handsome, clever, and rich, with a comfortable home (eight of them, actually) and a happy (if slightly hyperactive) disposition, seemed to unite some of the best blessings of existence; and had lived forty years in the world with very little to distress or vex him. In the summer of 2019, he was presiding over the most valuable startup in America: WeWork. To the cynical, it was a glorified desk rental company. To Adam, it was the company that would “elevate the world’s consciousness,” broker Middle East peace, build offices on Mars (presumably with the staple WeWork perks: ping pong, cold brew, free beer), and turn Adam into history’s first trillionaire. But then the searing sun of reality melted the wax that held his wings together, and he plummeted to earth, the value of his company going up in smoke behind him, like a contrail. The story of Adam’s spectacular rise and calamitous fall is the subject of a new book called “The Cult of We: WeWork, Adam Neumann, and the Great Startup Delusion.” It was written by two Wall Street Journal reporters, Eliot Brown and Maureen Farrell. Their real-time coverage of Adam’s erratic behavior and flagrant self-dealing helped to hasten his demise. In this episode, they speak with Mike Isaac, author of “Super Pumped: The Battle for Uber,” about hubris, greed, tech culture, and bad judgment.

Transcript

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0:00.0

I'm Rufus Griskem and this is the next big idea.

0:11.0

Today, the rise and fall of we work.

0:31.0

Welcome and thank you for coming.

0:34.0

It's a Sunday afternoon in September 2019,

0:38.0

and Adam Newman is in a pickle.

0:41.0

He's standing at an empty lobby at the headquarters of the company he runs.

0:44.0

We work.

0:45.0

Adam co-founded we work back in 2010.

0:48.0

At the time it was a side hustle.

0:50.0

A planned B in case his main gig,

0:52.0

making baby clothes with built-in knee pads, didn't work out.

0:56.0

But in the nine years since,

0:58.0

we work has gone from side hustle to juggered-on.

1:01.0

It brought co-working into the band stream

1:03.0

and reaped the rewards.

1:05.0

Half a million members,

1:06.0

locations in more than 120 countries,

1:08.0

and a valuation of $47 billion.

1:12.0

Now, Adam is trying to take the company public.

1:15.0

Last month, we work filed a prospectus with the SEC.

1:18.0

For the first time,

1:20.0

the most valuable start-up in the country

...

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