WeWork: From Unicorn to Bankruptcy

WeWork, once one of the most valuable start-ups in history, filed for Chapter 11 bankruptcy protection in November 2023. An innovator in the commercial real estate space, WeWork developed a “space-as-a-service” model, offering an increasingly mobile global labor force flexible work space, meeting rooms and connection services on demand in more than 500 locations worldwide. This case explores the combination of factors that fueled WeWork’s rapid growth and decision to IPO, and the factors that contributed to its fall into distress. The case study also explores how WeWork interacted with financial markets, including the venture capital, public equity, and SPAC markets, and how ebbs and flows in these markets can have dramatic impacts on the valuation and corporate governance of firms. Finally, the case examines the U.S. bankruptcy process, and the tools available to fix the company’s broken balance sheet. This case study would be informative in courses in finance, private equity, corporate restructuring, and debt management, as well as discussions on the various ways to value companies.