Talking on CNBC, leadership expert Jeffrey Sonnenfeld expressed concern about WeWork’s concept, business model and its CEO's leadership style. Comparing Adam Neumann with Mark Zuckerberg and Elon Musk, Sonnenfeld said they share a talent for showmanship, but that WeWork lacked the technology that backed up Facebook and Tesla’s valuations and faced plenty of competition in the sector. His comments followed news that Neumann sold WeWork shares worth $400m and borrowed a further $300m against his shareholding, using some of the cash to buy properties, which were leased to the company. Dan Primack, business editor for Axios, defended Neumann stating the buildings were purchased when WeWork was struggling to get landlords to lease property to the company. Primack said Neumann, who is WeWork’s largest shareholder, last sold shares in October 2017 and has confirmed that he will not sell shares close to the IPO.
Talking on CNBC, leadership expert Jeffrey Sonnenfeld expressed concern about WeWork’s concept, business model and its CEO's leadership style. Comparing Adam Neumann with Mark Zuckerberg and Elon Musk, Sonnenfeld said they share a talent for showmanship, but that WeWork lacked the technology that backed up Facebook and Tesla’s valuations and faced plenty of competition in the sector. His comments followed news that Neumann sold WeWork shares worth $300m and borrowed a further $400m against his shareholding, using some of the cash to buy properties, which were leased to the company. Dan Primack, business editor for Axios, defended Neumann stating the buildings were purchased when WeWork was struggling to get landlords to lease property to the company. Primack said Neumann, who is WeWork’s largest shareholder, last sold shares in October 2017 and has confirmed that he will not sell shares close to the IPO.