Adam Neumann Net Worth: Israeli-American businessman and investor Adam Neumann (born April 25, 1979) co-founded WeWork with Miguel McKelvey in 2010 and was CEO till 2019. In 2019, he co-founded 166 2nd Financial Services with his wife, Rebekah Neumann, to manage their wealth, investing over $1 billion in real estate and companies.
Early Years Of Living
Israel’s Neumanns are Ashkenazi Jews. Neumann’s parents, both physicians, divorced when he was seven. His mother’s medical residency brought him and his sister, Israeli model Adi Neumann, to the U.S. Neumann struggled with dyslexia until third grade.
After four years in the US, they moved to Kibbutz Nir Am in 1990. He graduated from the Israeli Naval Academy and was a sergeant in the Israeli Navy for five years (captain). He later attended Baruch College’s Zicklin School of Business.
Adam Neumann Professional life
Neumann established Krawlers before WeWork. Neumann and Miguel McKelvey met through a mutual connection and started Green Desk, the forerunner of WeWork, in 2008. The two sold their Green Desk stake and used the proceeds to buy a 33% stake in the company from Brooklyn entrepreneur Joel Schreiber. In 2010, They founded WeWork. Neumann said he wanted to reproduce the lacked sense of community he found in Israel in the West.
Neumann chartered a Gulfstream G650 to go from the U.S. to Israel in 2018. Neumann and his companions smoked marijuana during the flight. The flight crew uncovered a cereal box loaded with marijuana after landing in Israel and told the jet owner. The jet’s owner feared marijuana trafficking and ordered it home. Neumann and his companions booked a separate flight.
A former employee sued WeWork in 2018 for sexual harassment and other unethical behavior. Neumann “plied” her with tequila during her interview, she said. WeWork banned unlimited beer for employees and limited them to four per day in New York after this accusation.
On September 22, 2019, the Wall Street Journal reported that the WeWork board planned to urge Neumann to resign after “a difficult week” in which his erratic behavior and drug use came to light before an IPO. The Wall Street Journal stated he “undermined his position” at WeWork by withdrawing $700 million before the IPO.
Neumann compensated the business $5.9 million for his “We” trademark. His successors are Artie Minson and Sebastian Gunningham. The Wall Street Journal stated in October 2019 that Neumann would get $1.7 billion from SoftBank for leaving WeWork’s board.
Minority shareholders eventually sued Neumann and other WeWork officials for fiduciary violation. Forbes put his net worth as $750 million on 5 March 2021, having slid off the billionaires’ list in 2020.
Neumann focuses on Miami real estate since March 2022.
Dissipation and Return of Wealth
Adam’s paper net worth surpassed $4 billion based on its $47 billion private value in mid-2019. Adam may have been valued at $9+ billion if the firm reached its expected $80-100 billion valuation. WeWork’s IPO and business went apart after Adam’s extravagant spending, incompetence, and inadequate operations were revealed.
SoftBank, WeWork’s largest investor, agreed to buy $3 billion in stock to salvage the company in October 2019. From the investment, Adam got $1 billion. The deal was investigated. It was a big golden parachute for someone who had hurt his employees and investors. This $1 billion windfall helped Adam keep his billionaire status (after taxes).
SoftBank canceled the deal on April 2, 2020. The previous month, coronavirus destroyed the planet and the real estate industry. By withdrawing $3 billion, Neumann lost $1 billion. His net worth plummeted from $1 billion to $400 million. Neumann sued SoftBank and obtained an estimated $700 million in rewards — a $106 million cash settlement and $578 million in shares.
WeWork went public through a SPAC merger in October 2021. Neumann might make $250 million if the amalgamated company’s share price stays above $12. He still holds 48 million shares of the new public business, which debuted at $8 billion. Adam’s 8% stake was worth $720 million.
Softbank invested $47 billion in WeWork in 2018. Adam’s 10% ownership was worth $4.7 billion at the time. In August 2019, the business announced plans to undertake a public stock offering with a $40-60 billion valuation. The company’s SEC filing was criticized as fiction.
The corporation lowered its valuation target to $20 billion within weeks. Some analysts estimated the corporation was worth $3 billion or less. Adam’s stake in the company would be $300 million, down from $4+ billion a few years ago.
Adam paid out hundreds of millions of dollars in personal shares while maintaining a 10% ownership in the corporation. He’s made $700 million thus far. Adam rented buildings he bought the same day he cashed out. He registered the “We” trademark and sold it to his own company for $5.9 million.
A story in September 2019 highlighted Adam and Rebekah Paltrow Neumann’s unethical activities. Adam and his friends smoked so much pot on a private jet to Israel that the owner recalled it. Adam and Rebekah spent lavishly on a wave pool firm and a daycare, according to the article. Gwyneth Paltrow’s cousin is Rebekah.
Adam was ousted as WeWork’s CEO on September 24, 2019. Softbank bought Neumann’s remaining interest for $1.7 billion in October 2019. Softbank reportedly paid Neumann $185 million for advice. Neumann will be a billionaire if this sale goes through, despite multiple lawsuits.
List of Properties Owned by the Couple
Adam and Rebekah owned a $35 million NYC mansion, a 60-acre Westchester County estate, a $22 million Bay Area property, and TWO Hamptons homes at their peak. Their portfolio was once worth $90 million. Much of the real estate was bought through WeWork stock-backed mortgages.
Adam’s portfolio is uncertain. He sold the Bay Area mansion, a Hamptons residence, and a Westchester County estate for $22.4 million. Adam bought two Miami Beach houses for $44 million in 2021.
How rich is Adam Neumann?
Israeli-American businessman Adam Neumann is worth $1.5 billion. Adam Neumann co-founded and ran WeWork. WeWork provides entrepreneurs with shared workspaces and related services.
Adam Neumann and Miguel McKelvey started GreenDesk in Brooklyn, New York, in 2008.
The two sold the business in 2010 to create WeWork. WeWork rents communal workspace for as cheap as $45 a month and is a multibillion-dollar company. JPMorgan Chase, Goldman Sachs, Softbank, and Benchmark Capital-backed WeWork. The corporation was once valued at $80 billion or more. It crumbled, and Neumann was fired.
Frequently Asked Questions:
Is Adam Neumann a Billionaire Still?
Forbes listed his net worth as $750 million on 5 March 2021, having eliminated him from its list of billionaires in 2020. Neumann has turned his concentration to property investment in Miami as of March 2022.
What Does Adam Neumann Do Now?
Where currently is Adam Neumann? Adam Neumann has transitioned from co-working spaces to real estate investment, and he is still a billionaire. According to the Washington Street Journal, the businessman currently owns over 4,000 units in Miami.
Who Now Owns WeWork?
In October of 2020, Adam Neumann led a $42 million investment round in Alfred, which CNN defines as “a startup that provides concierge-like services to tenants of residential buildings.” Neumann had launched a similar idea in 2016 with WeLive, which were New York City co-living spaces.