Adam Neumann Net Worth 2024

What is Adam Neumann’s net worth and wage?

Adam Neumann is an Israeli-American businessman and entrepreneur who has a net worth of $1.5 billion. Adam Neumann is greatest recognized for being the co-founder and former CEO of WeWork. Adam Neumann and Miguel McKelvey co-founded an organization known as GreenDesk in 2008 as an eco-friendly co-working area in Brooklyn, New York. The pair offered that enterprise in 2010 and used the proceeds to launch their subsequent enterprise, WeWork. WeWork raised billions of {dollars} from buyers equivalent to JP Morgan Chase, Goldman Sachs, Softbank and Benchmark Capital. Softbank alone invested $16 billion into WeWork over time, $10 billion whereas Neumann was in cost. Adam cashed out $1 billion value of his private shares when it was nonetheless a personal firm.

At its peak in 2021, WeWork was valued at $45 billion in non-public funding rounds. It was anticipated to go public at a valuation of $80-$100 billion in late 2021. That didn’t occur. WeWork filed for chapter in November 2023.

Wealth Evaporation and Return

At his skilled peak in mid-2019, Adam’s private paper net worth topped $4 billion primarily based on its $47 billion non-public valuation. Had the corporate achieved its predicted public valuation of $80-100 billion, Adam might have been value as a lot as $9+ billion. Unfortunately, the WeWork IPO and enterprise at massive, fell aside precipitously within the wake of revelations of Adam’s profligate spending, mismanagement and the final weak spot of the corporate’s operations.

Even after every thing fell aside, in October 2019, WeWork’s largest investor SoftBank, agreed to purchase $3 billion value of firm inventory to avoid wasting the corporate. From that funding, roughly $1 billion was earmarked to go to Adam personally. The deal was scrutinized extensively. It was seen as an excessively beneficiant golden parachute for an individual who had prompted a lot harm to his staff and buyers.

On April 2, 2020, SoftBank introduced that it was pulling out of that deal utterly. Over the earlier month the world at massive, however the actual property world particularly, had been decimated because of the unfold of coronavirus. By rescinding their $3 billion cash injection, Neumann personally misplaced $1 billion. And with that, he additionally misplaced his billionaire standing, as his net worth dropped to round $400 million.

Neumann sued SoftBank and in the end an settlement was made the place would obtain an estimated $700 million in payouts – he acquired a one-time $106 million money settlement and was allowed to promote $578 million value of his shares to the financial institution. He was additionally paid a $185 million non-compete fee.

In October 2021, WeWork lastly became a public company through a SPAC merger. Neumann has the chance to earn a roughly $250 million bonus cost if the merged firm maintains a share worth above $12. Furthermore, he nonetheless owns round 48 million shares of the brand new public firm which on its debut day was value round $8 billion. At that degree, Adam’s roughly 8% stake was worth $720 million.

In 2022, Neumann shifted his focus to investing in property in Miami. His new residential real-estate firm, Flow, attained an funding of $350 million by enterprise capital agency Andreessen Horowitz. And in May 2022, it was reported that Neumann was behind Flowcarbon, a start-up carbon credit score buying and selling platform operating on blockchain.

Valuations

In 2018 WeWork accepted an funding from Softbank that valued that firm at $47 billion. At that time Adam’s 10% stake within the enterprise was value $4.7 billion on paper. In August 2019 the corporate introduced its plans to difficulty a public providing of inventory which they hoped would land the corporate with a public valuation of $40-60 billion. The paperwork the corporate submitted to the SEC with their submitting have been extensively derided as being fantasy. Within a number of weeks the corporate lowered their deliberate valuation goal to $20 billion. Some analysts believed the corporate was value half that quantity or much less, doubtlessly as little as $3 billion. At that degree, Adam’s stake within the firm can be value $300 million, a really far cry from $4+ billion a number of years earlier.

WeWork in the end went public in October 2021 through SPAC at an $8 billion valuation. Two years later the corporate’s market cap was $45 million and in November 2023 the corporate filed for chapter.

Controversies

Over the course of a number of massive exterior investments Adam cashed out a whole lot of hundreds of thousands of {dollars} value of his private shares whereas nonetheless sustaining a roughly 10% stake within the enterprise. As of this writing he has cashed out to the tune of $700 million. On the identical day as some cash-outs, Adam entered into purchase agreements with buildings which he then instantly leased to WeWork. He additionally registered the trademark for the phrase “We” which he then offered to his personal firm for $5.9 million. A September 2019 Wall Street Journal article revealed a laundry checklist of questionable practices by Adam and his spouse Rebekah Paltrow Neumann. Practices like smoking a lot weed on a rented non-public jet to Israel that the proprietor recalled the jet when he came upon, leaving Adam and his companions stranded. The report additionally detailed Adam and Rebekah’s lavish spending on unrelated companies like a wavepool firm and a daycare. Rebekah Paltrow Neumann is Gwyneth Paltrow’s first cousin.

On September 24, 2019, We’s Board of Directors introduced Adam can be eliminated as CEO from the corporate.

In October 2019 it was reported that Softbank had agreed to buyout Neumann’s remaining stake within the firm for $1.7 billion. Softbank additionally reportedly agreed to pay Neumann a $185 million consulting price. If this deal really goes by means of – there have been quite a few lawsuits – Neumann will likely be a billionaire when it is all stated and completed in any case.

Personal Homes

At their peak, Adam and Rebekah owned a $35 million house in New York City, a 60-acre property in Westchester County, New York, a $22 million home in the Bay Area and TWO lavish properties within the Hamptons. In whole their private actual property portfolio was at one time value no less than $90 million. Much of the actual property was reportedly bought with massive mortgages backed by his inventory in WeWork. It’s unclear if and the way Adam will likely be ready preserve his portfolio.

In 2023, Neumann listed his luxury Gramercy Park penthouse for $32 million, a $5.5 million minimize from when it was initially listed three years in the past.

He in the end offered the Bay Area mansion for $22.4 million, considered one of their Hamptons properties and the property in Westchester County, NY.

In June 2021, Adam paid $44 million for 2 side-by-side Miami Beach properties.

Personal Life

Adam Neumann and his spouse, Rebekah Neumann, have six kids collectively. The covenants of WeWork at one level listed their family members as the permanent line of succession for the corporate. Adam and Rebekah at one level pledged to donate $1 billion to charity from their WeWork wealth. It’s usually understood that this pledge evaporated when WeWork evaporated.

Adam’s brother-in-law Avi Yehiel is a former skilled Israeli footballer and present CEO of Hapoel Petah Tikva F.C. In 2022, Neumann donated greater than $400,000 to the staff and have become their important sponsor as a part of a three-year settlement.