WeWork IPO reveals company loaned millions to CEO Adam Neumann and other company execs
- WeWork loaned $7 million to CEO Adam Neumann in 2016, the company revealed in its initial public offering paperwork.
- Neumann paid back the loan in full in November 2017.
- The revelation comes after a report from The Wall Street Journal revealed that Neumann had purchased buildings and leased them to WeWork - raising questions about whether or not doing so was a conflict of interest.
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WeWork, the buzzy office coworking company that just publicly revealed its paperwork for initial public offering on Wednesday, loaned $7 million to CEO Adam Neumann in 2016, the firm's S-1 document shows.
The loan was made in June of that year, which Neumann paid back in full in cash in November 2017.WeWork's IPO has been one of the most anticipated market debuts of the year. The company, valued at $47 billion, is the most highly valued company to file for an initial public offering since ride-hailing giant Uber made its market debut in May.
The paperwork provided a first glimpse into the company's financials, revealing that it lost $429 million on $436 million in revenue in 2016. It also lost $890 million on $886 million in revenue the following year, and in 2018 it lost $1.6 billion on $1.8 billion in revenue.
In addition to loaning Neumann millions, WeWork also issued loans to top executives and board members Lew Frankfort, Jen Berrent, and Artie Minson in the amounts of $6.3 million, $5.2 million, $4.6 million, and $3 million respectively. All of the loans have been repaid, but approximately $0.6 million of the loan to Minson was forgiven.
WeWork's IPO and the details about its financials - including the money it's loaned Neumann and other top executives - come after a report from The Wall Street Journal revealed earlier this year that the CEO had purchased buildings in New York and San Jose and leased them to WeWork.
Neumann is said to have made millions in the process, according to the Journal. While WeWork told the Journal at the time that all the deals were reviewed and approved by the company's board of directors and disclosed to investors, the report also suggested that investors were concerned about the dealings posing a conflict of interest.
Neumann also cashed out $700 million ahead of the company's IPO, the Journal reported in July, which was an unusual move considering most founders typically wait until after going public to do so.