Adam Neumann is no longer a billionaire, Forbes now estimates.
The former WeWork CEO’s net worth has plummeted to $600 million, the magazine estimates, paralleling the plunging valuation of his co-working empire following the company’s up-and-down IPO adventure that saw the company whipsaw from a $47 billion valuation to talk of bankruptcy in just 6 weeks. Forbes’ Samantha Sharf also reported that Neumann’s cofounder, Miguel McKelvey, has also lost his billionaire status.
The $3.5 billion drop in Neumann’s personal net worth was the result of the declining value of Neumann’s 18% stake in WeWork, Forbes reported. WeWork was valued at $47 billion in January following an investment from Japanese investment firm Softbank. However, the company reportedly sought a valuation as low as $10 billion in September as public scrutiny over its steep losses and leadership structure threatened its IPO. Forbes now estimates that the company is worth “at most $2.8 billion.”
A representative for Neumann declined Business Insider’s request for comment on whether Neumann’s net worth had fallen below $1 billion.
The Forbes calculation of Neumann’s net worth includes:
Forbes does not believe that either Neumann or McKelvey — who the publication says is now worth $400 million — will likely rejoin the three comma club.
Neumann founded WeWork in 2010 alongside his now-wife Rebekah Neumann and Miguel McKelvey. Concern from potential investors over the company’s finances and corporate governance issues pushed Neumann to resign as WeWork’s CEO on September 24.
Under Neumann’s leadership, the company was plagued by a party culture that included alcohol-fueled company retreats and little work-life balance, Business Insider’s Meghan Morris and Julie Bort previously reported.
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