Adam Neumann Net Worth
Adam Neumann net worth and salary: Adam Neumann is an Israeli-American businessman and entrepreneur who has a net worth of $1 billion. Adam Neumann is best known for being the co-founder and former CEO of WeWork, an American company that provides shared workspaces and related services for entrepreneurs. Neumann and Miguel McKelvey established GreenDesk in 2008 as an eco-friendly co-working space in Brooklyn, New York. The pair sold the business in 2010 and used the proceeds to launch their next venture, WeWork. WeWork, which would eventually be known as just "We", rents communal rent spaces for as little as $45 a month and has developed into a multi-billion-dollar business. WeWork has raised billions of dollars investors such as JP Morgan Chase, Goldman Sachs, Softbank and Benchmark Capital. Neumann graduated from City University of New York Baruch.
Valuations: In 2018 WeWork accepted an investment from Softbank that valued that company at $47 billion. At that point Adam's 10% stake in the business was worth $4.7 billion on paper. In August 2019 the company announced its plans to issue a public offering of stock which they hoped would land the company with a public valuation of $40-60 billion. The documents the company submitted to the SEC with their filing were widely derided as being fantasy. Within a few weeks the company reduced their plan valuation target to $20 billion. Some analysts believe the company is worth half that amount or less, potentially as little as $3 billion. At that level, Adam's stake in the company would be worth $300 million, a very far cry from $4+ billion a few years earlier.
Controversies: Over the course of several large external investments Adam has cashed out hundreds of millions of dollars worth of his personal shares while still maintaining a roughly 10% stake in the business. As of this writing he has cashed out to the tune of $700 million. On the same day as some cash-outs, Adam entered into purchase agreements with buildings which he then instantly leased to WeWork. He also registered the trademark for the word "We" which he then sold to his own company for $5.9 million. A September 2019 Wall Street Journal article revealed a laundry list of questionable practices by Adam and his wife Rebekah Paltrow Neumann. Practices like smoking so much weed on a rented private jet to Israel that the owner recalled the jet when he found out, leaving Adam and his companions stranded. The report also detailed Adam and Rebekah's lavish spending on unrelated businesses like a wavepool company and a daycare. Rebekah Paltrow Neumann is Gwyneth Paltrow's first cousin.
On September 24, 2019, We's Board of Directors announced Adam would be removed as CEO from the company.
In October 2019 it was reported that Softbank had agreed to buyout Neumann's remaining stake in the company for $1.7 billion. Softbank also reportedly agreed to pay Neumann a $185 million consulting fee. If this deal actually goes through – there have been numerous lawsuits – Neumann will be a billionaire when it's all said and done afterall.
Personal Homes: Adam and Rebekah own a $35 million home in New York City, a 60-acre estate in Westchester County, New York, a $21 million home in the Bay Area and TWO lavish homes in the Hamptons. In total their personal real estate portfolio is worth at least $90 million. Much of the real estate was reportedly purchased with large mortgages backed by his stock in WeWork which has arguably been rendered worthless. It's unclear if and how Adam will be able maintain his portfolio.
|Net Worth:||$1 Billion|