WeWork Brings In Sandeep Mathrani As New CEO
The startup is working to establish profitability within five years after experiencing a major decrease in its valuation. When SoftBank started pouring billions into WeWork it was valued at $47 billion. That valuation has since spiraled down to $8 billion after a failed attempt at making the company publicly traded.
Prior to this new role, Mathrani served as the chief executive of Brookfield Property Partners. That company is popularly known for owning malls. Mathrani’s transition to WeWork signals the startup’s commitment towards primarily presenting themselves as a real estate start up.
Under the leadership of former CEO Adam Neumann, WeWork ventured into a myriad of services including the launch of an event planning platform and an elementary school. However, his business practices led investors to pull out of the IPO that had been long planned.
WeWork is not close to establishing profitability. During the third quarter, WeWork operated at a $1.3 billion-dollar loss and only brought in $934 million in revenue. Capital is being spent to keep the company afloat. Currently, WeWork has $2.5 billion in capital that is separate from the amount SoftBank has invested in them.