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we work co-founder Adam Newman is reportedly trying to buy back bankrupt company this is my favorite store I
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thought you'd love it reminder we work filed for bankruptcy in November of 2023 four years after Adam Newman stepped
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down Newman's attempts to purchase uh apparently stretch back to October 2022 when he attempted to arrange a billion
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dollars in financing but he was stonewalled by former CEO Sandy mathrani the letter was sent by Newman's Council
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cited the support of Dan L's hedge fund third point but in response the fund said it only had preliminary
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conversations with Newman oh look at that and had not made a commitment to participate it you know funding secured
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I guess um uh I just go for it Scott you're the you're the we work guy well you got to
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give the guy credit I mean he kind of has no shame I I believe that the reason Adam Newman was not brought up on
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criminal charges I don't know if he would have been found guilty and the reason why um Elizabeth Holmes is in
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prison is that is is a cultural issue involving Saving Face and that is masi yoshian decided orasa didn't want to
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lose face and declare bankruptcy and say that he'd been fooled by Adam Newman um
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and as a result uh Adam Newman who is the ultimate poker player in terms of just kind of enormous balls said I'll
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let this thing go under unless you buy me out at a ridiculous premium he walked away with I think 10 or no one has ever
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got a 10% commission that has never happened before the usually the complaint is okay this company's very
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profitable but you're overpaying the CEO I mean if you whatever you think about Elon mus compensation and that that the
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compensation committee was not representing all shareholders and could have you know they they probably could
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have got the same deal paying him 10 billion the this is unprecedented and he is Shameless he went out and immediately
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did a high-profile thing around trying to pretend that buying apartment was somehow like a and something flow where
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did that go I think I think Andre and Horwitz is probably already regretting getting in bed with this guy it's not a
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good look for them and now he's back saying anyways if he if his board had decided to had all of a sudden gone you
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know he misled Us and got aggressive with him I think this could have been a very different outcome for him and
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instead he's back and trying to buy um we work out of bankruptcy I don't think the judge is going to look kindly on him
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having taken so much money out and then showing up to buy the bond I even think there's a law he's he's got a set though
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doesn't he oh my gosh and not only that have have you spent time with him he's very amusing I had breakfast with him
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once and he's super amusing but no no I kept reaching for my wallet and I was like no I just heard he's very Charming
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I heard from my I have a couple of friends at wework and I heard from him the morning I put out that thing then
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and when the IPO Unwound basically saying thanks my kids can't go to school now um but anyways he's
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um the when Dan L comes out and says no Adam's exaggerating that's a really bad look for Adam Newman and I would bet
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Dan's gonna have nothing to do with this guy now no Dan's a very canny investor yeah and I can't imagine any
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institution when you're an Institutional Investor you make a lot of money um uh over the long term just by by doing the
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following not making stupid mistakes and anyone who loses money with Adam Newman
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right now will be accused of making a stupid mistake and so I think it's going to be just very difficult he wouldn't
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lose money what do you think of the actual thing let's leave aside he flee flee these people and some you know no
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he just got took the money he didn't fleece them they knew they knew just what he well I don't okay but I would be
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very interested I believe that the board I mean that's what people say people will say that Elizabeth Holmes lied to
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her board and I would just love to know all the emails about what Adam Newman was saying about performance of the
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company anyways this will all come out I'm sure at U at some point but just to talk about wework for a second um wework
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was invented for bankruptcy and for someone to make money here because in bankruptcy you get to go through their
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whatever it is 770 locations and cherry-pick the ones that are working and exit the leases of the ones that
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aren't and repackage the thing and pay the debtors some of their money back issue new Equity we work we work with
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live on I believe that I bet everyone from Barry Stern to a variety of um real estate Savvy investors are looking at
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this thing because I called when I when I saw I called a friend of mine as a distress credit investor and said could
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you look at the wework bonds and what it would cost to take over this company because retail and this is a retail
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concept is invented or bankruptcy is invented for this so this will we work will will live on to fight another day
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so get this uh the the amount of global co-working space or the user base that uses co-working from 21 2021 to
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2024 is estimated to be up 100% the number of people using co-working space has doubled since um since the pandemic
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it's a good business this is a good business that's had uh that has quite frankly just a terrible capital
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structure and it just wasn't a tech company it didn't need a wave company you know he bought he kind of lathered
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Tech all over was just crazy crazy time is over sandep came in sandep is not crazy but he had a bad capital structure
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they just owed too much money and leases this is what kills retail companies when
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you enter into a bad lease they're 10year leases so that lease is costing you 3 million bucks a year and you're
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making 2 million it's a weeping sore of a liability that will cost you $10 million in losses over 10 years but poof
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under the opes of chapter 11 bankruptcy which is a wonderful thing about America
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you get to go through and cherry pick all your leases and get out of bad ones we work yeah you are it's like hotels
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they say the first person it's a good brand it's a good they say it's the third person who owns a hotel that makes
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money the first person comes in be build something beautiful and non-economic someone else comes in and takes it off
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them they lose money and then the third person who comes in and buys the hotel for 40 or 60 cents on the dollar makes
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money we're at that third person right now right yeah yeah that's a good brand good luck Adam good luck
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Adam