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Axios Re:Cap

WeMess

Axios Re:Cap

Axios

Daily News, News

4.5705 Ratings

🗓️ 23 September 2019

⏱️ 11 minutes

🧾️ Download transcript

Summary

WeWork's largest investor is pushing to oust its CEO, putting an IPO in further doubt. Dan digs in with The Wall Street Journal's Maurren Farrell. Plus, Disney's flirtation with Twitter and how a vaping ban could backfire on Trump.

Transcript

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0:00.0

Welcome to Axis Pererata, where we take just 10 minutes to get you smarter on the collision of tech, business, and politics.

0:13.7

Presented by Bridge Bank. Be bold. Venture wisely. On today's show, Disney admits to flirting with Twitter and how vaping could hurt President Trump in 2020.

0:22.7

But first, we mess.

0:24.6

Okay, honestly, I did not expect that we'd be doing another episode about WeWork, at least not yet.

0:29.6

But this thing is now full-fledged soap opera, which means it takes unexpected and ridiculous turns when you least expect them.

0:36.2

The latest came this weekend with reports,

0:38.5

first by the Wall Street Journal, that lead we work investor SoftBank is seeking to oust company

0:43.4

co-founder and CEO Adam Newman. The basic idea is that kicking out Newman would stop WeWork from

0:48.7

going public in 2019, which is something SoftBank has been wanting for weeks, but so far hasn't

0:54.0

managed to

0:54.4

completely accomplish. So three things to know. First, there are no new allegations of serious

0:59.7

wrongdoing against Newman, at least not in terms of anything SoftBank wouldn't or shouldn't

1:03.9

have known when they invested at a $47 billion valuation earlier this year. Again, at least

1:09.5

not that we know about. Two, Newman recently agreed

1:12.5

to corporate governance changes that would allow the board to fire him. But it should be noted,

1:17.0

he also could fire the entire board first, so at least in theory. So this is kind of a game of

1:22.1

corporate chicken. Three, we work could run into a major cash crunch if this IPO doesn't happen

1:27.3

and happen soon. Not only because it wouldn't generate billions of dollars from selling stock, but also because it's got a $6 billion debt deal reliant on the IPO occurring in 2019.

1:38.0

Remember, WeWork is a company that loses tons of money and has huge liabilities.

1:42.8

Cash is king. The bottom line here, no matter whether

1:45.9

Newman wins or SoftBank wins, the actual business is being hurt in the meantime. For example,

1:51.4

why would a big enterprise company right now want to commit to multiple WeWork contracts

...

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