WeWork has only enough cash to last to maybe next spring. It’s losing millions of dollars a day. It may be shut out of the public stock and bond markets to raise new money.
So now the two new co-CEOs named to replace Neumann — Sebastian Gunningham and Artie Minson — need to quickly figure out a way forward for a company that was once one of the world’s most valuable startups but has never made a penny in profit. That likely means seeking substantial new bank loans and private investments. It also may mean shedding thousands of jobs and tossing out Neumann’s grow-at-all-costs ambitions.
The first task: WeWork is in talks with Goldman Sachs Group Inc. and JPMorgan Chase & Co. about a new $3 billion loan. But there’s a catch: Any such deal would also require the company to raise new equity. That could mean Gunningham and Minson returning hat in hand to its biggest investor — SoftBank Group Corp., the Japanese company that has already pumped in more than $10 billion.