Adam Neumann was flying high. Literally.
His office-rental giant WeWork was months away from being valued at $47 billion. Revenue was doubling annually. And Mr. Neumann was zipping across the Atlantic Ocean in a Gulfstream G650 private jet with friends last summer, smoking marijuana.
After the group landed in Israel and left the plane, the flight crew found a sizable chunk of the drug stuffed in a cereal box for the return flight, according to people familiar with the incident. The jet’s owner, upset and fearing repercussions of trans-border marijuana transport, recalled the plane, leaving Mr. Neumann to find his own way back to New York, these people said.
Since Mr. Neumann co-founded WeWork—recently renamed We Co.—with Miguel McKelvey nine years ago, he has led with unusual exuberance and excess. His combination of entrepreneurial vision, personal charisma and brash risk-taking helped the company surpass $2 billion in annual revenue, and made it the country’s most valuable startup.
Now many of the same qualities that helped fuel his company’s breakneck growth in the private market are piling up as potential liabilities as the company prepares to go public—helmed by a CEO who looks little like a typical public-company chief.
Mr. Neumann muses about the implausible:
- becoming leader of the world,
- living forever,
- amassing more than $1 trillion in wealth.
Partying has long been a feature of his work life, heavy on the tequila.
Public investors are increasingly skeptical of the formula that has worked for Mr. Neumann so far: his pitch that We is far more than a real-estate company. With its rapid growth and use of technology, he argued, the company deserves rich valuations normally reserved for tech companies.
Instead, many potential investors now see a fast-growing office subleasing company with losses of more than $1.6 billion last year.
Since We filed the prospectus for its initial public offering last month, it has been besieged with criticism over its governance, business model and ability to turn a profit. It is now expecting an IPO valuation as low as a third of the $47 billion sticker price it garnered in a January funding round—a drop without recent precedent. This week, We postponed the offering until October at the earliest.
Wall Street and Silicon Valley investors have been dismayed by the number of potential conflicts of interest disclosed in the “S-1” IPO prospectus, including Mr. Neumann leasing properties he owns back to the company and borrowing heavily against his stock. Even some of We’s private investors said they were angered to learn that an entity Mr. Neumann controls sold the rights to the word “We” to the company for almost $6 million—before public pressure led him to unwind the deal.
“This is not the way everybody behaves,” said Dick Costolo, former CEO of Twitter Inc., who led the company through one of the larger tech IPOs of the past decade. “The degree of self-dealing in the S-1 is so egregious, and it comes at a time when you’ve got regulators and politicians and folks across the country looking out at Silicon Valley and wondering if there’s the appropriate level of self-awareness.”
Given the prominence of the IPO, he added, “that is a big problem.”
Mr. Neumann, 40, declined to comment through a spokesman, who cited rules surrounding the planned IPO. Mr. Neumann told We employees Tuesday the process had been humbling and he would learn from it, say people who heard him. We executives have previously said he is strongly devoted to the company, and many of his personal transactions were made with the company’s best interests at heart.
This account is based on interviews with current and former employees, investors and friends who interacted with Mr. Neumann as he built We.
For startup investors, the 6-foot-5 Mr. Neumann has always had the qualities they crave in Silicon Valley founders, despite being based in New York. He is intensely ambitious and a masterful storyteller with a magnetic personality who can inspire and sell.
Raised in Israel on a kibbutz, Mr. Neumann moved to the U.S. when he was 22, where he attended Baruch College and tried to start businesses. One was a collapsible heel on women’s shoes that didn’t get off the ground. Working out of his Tribeca apartment, he started Krawlers, which sought to make baby clothes with knee pads to make crawling more comfortable. The slogan, he has said: “Just because they don’t tell you, doesn’t mean they don’t hurt.” It never gained traction.
He and Mr. McKelvey started a small co-working space on the side during the recession that followed the financial crisis and were amazed by the demand.
By 2010, they had started WeWork, with essentially the same core business model that exists today: They lease an office long-term, renovate it to make it hip and inviting, and sublease smaller desks and offices short-term.
How our president and our mass shooters are connected to the same dark psychic forces.
What links Donald Trump to the men who massacred innocents in El Paso and Dayton this past weekend? Note that I said both men: the one with the white-nationalist manifesto and the one with some kind of atheist-socialist politics; the one whose ranting about a “Hispanic invasion” echoed Trump’s own rhetoric and the one who was anti-Trump and also apparently the lead singer in a “pornogrind” band.
Bringing up their differing worldviews can be a way for Trump-supporting or anti-anti-Trump conservatives to diminish or dismiss the president’s connection to these shootings. That’s not what I’m doing. I think Trump is deeply connected to what happened last weekend, deeply connected to both massacres. Not because his immigration rhetoric drove the El Paso shooter to mass murder in some direct and simple way; life and radicalism and violence are all more complicated than that. But because Trump participates in the general cultural miasma that generates mass shooters, and having a participant as president makes the problem worse.
The president’s bigoted rhetoric is obviously part of this. Marianne Williamson put it best, in the last Democratic debate: There really is a dark psychic force generated by Trump’s political approach, which from its birther beginnings has consistently encouraged and fed on a fevered and paranoid form of right-wing politics, and dissolved quarantines around toxic and dehumanizing ideas. And the possibility that Trump’s zest for demonization can feed a demonic element in the wider culture is something the many religious people who voted for the president should be especially willing to consider.
But the connection between the president and the young men with guns extends beyond Trump’s race-baiting to encompass a more essential feature of his public self — which is not the rhetoric or ideology that he deploys, but the obvious moral vacuum, the profound spiritual black hole, that lies beneath his persona and career.
Here I would dissent, mildly, from the desire to tell a mostly ideological story in the aftermath of El Paso, and declare war on “white nationalism” — a war the left wants because it has decided that all conservatism can be reduced to white supremacy, and the right wants as a way of rebutting and rejecting that reductionism.
By all means disable 8Chan and give the F.B.I. new marching orders; by all means condemn racism more vigorously than this compromised president can do. But recognize we’re dealing with a pattern of mass shootings, encompassing both the weekend’s horrors, where the personal commonalities between the shooters are clearly more important than the political ones. Which suggests that the white nationalism of internet failsons is like the allegiance to an imaginary caliphate that motivated the terrorists whose depredations helped get Trump elected in the first place. It’s often just a carapace, a flag of convenience, a performance for the vast TV-and-online audience that now attends these grisly spectacles, with a malignant narcissism and nihilism underneath.
And this is what really links Trump to all these empty male killers, white nationalists and pornogrind singers alike. Like them he is a creature of our late-modern anti-culture, our internet-accelerated dissolution of normal human bonds. Like them he plainly believes in nothing but his ego, his vanity, his sense of spite and grievance, and the self he sees reflected in the mirror of television, mass media, online.
Because he is rich and famous and powerful, he can get that attention with a tweet about his enemies, and then experience the rush of a cable-news segment about him. He doesn’t need to plot some great crime to lead the news; he just has to run for president. But having him as president — having him as a political exemplar for his party, and a cultural exemplar of manhood for his supporters and opponents both — is a constant ratification of the idea that we exist as celebrities or influencers or we don’t exist at all, and that our common life is essentially a form of reality television where it doesn’t matter if you’re the heel or hero so long as you’re the star.
One recurring question taken up in this column is whether something good might come out of the Trump era. I keep returning to this issue because unlike many conservatives who opposed him in 2016, I actually agree with, or am sympathetic toward, versions of ideas that Trump has championed — the idea of a
- more populist and worker-friendly conservative economics, the idea of a
- foreign policy with a more realpolitik and anti-interventionist spirit, the idea that
- decelerating low-skilled immigration would benefit the common good, the idea that
- our meritocratic, faux-cosmopolitan elite has badly misgoverned the republic.
But to take this view, and to reject the liberal claim that any adaptation to populism only does the devil’s work, imposes a special obligation to recognize the profound emptiness at the heart of Trump himself. It’s not as if you could carve away his race-baiting and discover a healthier populism instead, or analyze him the way you might analyze his more complex antecedents, a Richard Nixon or a Ross Perot. To analyze Trump is to discover only bottomless appetite and need, and to carve at him is like carving at an online troll: The only thing to discover is the void.
So in trying to construct a new conservatism on the ideological outline of Trumpism, you have to be aware that you’re building around a sinkhole and that your building might fall in.
The same goes for any conservative response to the specific riddle of mass shootings. Cultural conservatives get a lot of grief when they respond to these massacres by citing moral and spiritual issues, rather than leaping straight to gun policy (or in this case, racist ideology). But to look at the trend in these massacres, the spikes of narcissistic acting-out in a time of generally-declining violence, the shared bravado and nihilism driving shooters of many different ideological persuasions, is to necessarily encounter a moral and spiritual problem, not just a technocratic one.
But the dilemma that conservatives have to confront is that you can chase this cultural problem all the way down to its source in lonely egomania and alienated narcissism, and you’ll still find Donald Trump’s face staring back to you.
We need an uprising of decency.
If only …
If only Donald Trump were not president, we could have an interesting debate over whether private health insurance should be illegal. If only Trump were not president, we could have an interesting debate over who was softest on crime in the 1990s. If only Trump were not president, we could have a nice argument about the pros and cons of NAFTA.
But Trump is president, and this election is not about those things. This election is about who we are as a people, our national character. This election is about the moral atmosphere in which we raise our children.
Trump is a cultural revolutionary, not a policy revolutionary. He operates and is subtly changing America at a much deeper level. He’s operating at the level of dominance and submission, at the level of the person where fear stalks and contempt emerges.
He’s redefining what you can say and how a leader can act. He’s reasserting an old version of what sort of masculinity deserves to be followed and obeyed. In Freudian terms, he’s operating on the level of the id. In Thomistic terms, he is instigating a degradation of America’s soul.
Today, Sister Joan Chittister continues exploring the relationship between prophetic witness and contemplation:
A spiritual path that does not lead to a living commitment to . . . the Kingdom of God within and around us everywhere for everyone, is no path at all. . . . It is a dead end on the way to God. . . .