The Friday 56 is a weekly meme hosted by Freda's Voice where every Friday you pick a book and turn to page 56 or 56%, and select a sentence or a few, as long as it's not a spoiler. For the full rules, visit the the page HERE
Book Beginnings is a weekly meme hosted by Rose City Reader that asks you to share the first sentence (or so) of the book you're reading.
The definitive inside story of WeWork, its audacious founder, and what the company's epic unraveling exposes about Silicon Valley's delusions and the financial system's desperate hunger to cash in--from the Wall Street Journal reporters whose scoops hastened the company's downfall.
In 2001, Adam Neumann arrived in New York after five years as a conscript in the Israeli navy. Just over fifteen years later, he had transformed himself into the charismatic CEO of a company worth $47 billion--at least on paper. With his long hair and feel-good mantras, the 6-foot-five Neumann, who grew up in part on a kibbutz, looked the part of a messianic Silicon Valley entrepreneur. The vision he offered was mesmerizing: a radical reimagining of work space for a new generation, with its fluid jobs and lax office culture. He called it WeWork. Though the company was merely subleasing amenity-filled office space to freelancers and small startups, Neumann marketed it like a revolutionary product--and investors swooned.
As billions of funding dollars poured in, Neumann's ambitions grew limitless. WeWork wasn't just an office space provider, he boasted. It would build schools, create WeWork cities, even colonize Mars. Could he, Neumann wondered from the ice bath he'd installed in his office, become the first trillionaire or a world leader? In pursuit of its founder's grandiose vision, the company spent money faster than it could bring it in. From his private jet, sometimes clouded with marijuana smoke, the CEO scoured the globe for more capital. In late 2019, just weeks before WeWork's highly publicized IPO, a Hail Mary effort to raise cash, everything fell apart. Neumann was ousted from his company--but still was poised to walk away a billionaire.
Calling to mind the recent demise of Theranos and the hubris of the dotcom era bust, WeWork's extraordinary rise and staggering implosion were fueled by disparate characters in a financial system blind to its risks, from a Japanese billionaire with designs on becoming the Warren Buffet of tech, to leaders at JPMorgan and Goldman Sachs who seemed intoxicated by a Silicon Valley culture where sensible business models lost out to youthful CEOs who promised disruption. Why did some of the biggest names in banking and venture capital buy the hype? And what does the future hold for Silicon Valley unicorns? Wall Street Journal reporters Eliot Brown and Maureen Farrell explore these questions in this definitive account of WeWork's unraveling.
Beginning: "The crowd filling the Microsoft Theater in downtown Los Angeles buzzed with anticipation. Technicians in the control room readied cameras and then unleashed a kaleidoscopic array of spotlights that lit up the theater--the same one used for the Emmys."
56: "The herd followed suit, and worshipping at the altar of the founder quickly became Silicon Valley's new religion. Some called it the cult of the founder."
Comments: One of the nonfiction books on my radar this year was a release that came out in 2021 called The Cult of We. This book was very informative and was a fascinating look at the rise and fall of WeWork. What are you reading this week?
