On the morning of February 3, Beijing time, WeWork announced the appointment of Sandeep Maslani as the company’s new chief executive, according tomedia reports. Mr Maslany, an experienced real estate executive, will be responsible for turning the fortunes of the troubled start-up around the backdrop of the failure of WeWork’s IPO plans last year.
Maslany will take office on February 18. He will take over from Artie Minson and Sebastian Gunningham, current co-chief executives of WeWork, who were disgraced last September by adam Neumann, the disgraced former CEO and co-founder Neumann has been co-CEO since leaving the company.
“I am honored to be joining this company at this critical time in WeWork’s history,” Maslany said in a statement Sunday. By adhering to shared values and putting our members first, we will redefine the way employees and companies work in terms of innovation platforms, teams of excellence, and great potential. “
Under Neumann’s leadership, WeWork raised billions of dollars and expanded its partnership to hundreds of cities around the world. In a round of investment valuations, the company’s valuation of $47bn is eye-opening. But also under Mr Neumann’s leadership, the company’s IPO plans have failed, in large part because of his unfettered powers and numerous potential conflicts of interest, as well as WeWork’s staggering business losses.
In October, SoftBank bought an 80 per cent stake in the company as part of a $5bn capital injection deal and accelerated a $1.5bn equity investment, which was due to start in 2020. SoftBank valued WeWork at $8bn in its acquisition plan, a fraction of its highest valuation.
Maslany was recruited to the company by Marcelo Claure, executive chairman of WeWork, and Maslany will report directly to him in the future. Claure is also a director and chief operating officer of SoftBank Group. More than three months ago, he became executive chairman of WeWork as part of SoftBank’s bail-out plan.
Since Claure joined the company, WeWork has developed a five-year strategic plan that Maslany will be responsible for. According to the company’s statement, the plan includes earnings on an adjusted EBITDA basis by 2021 and positive free cash flow by 2022.
That would be a major shift for the company since 2018, when it lost a staggering $1.9 billion (according to its IPO prospectus last year).
“In the 100 days since I joined WeWork, we’ve made tremendous progress in strengthening our business,” Claure said. We continue to make major changes to build a strong management team that enables the company to operate better. “
Maslany will bring his real estate business into his management team.
Previously, Maslany was chief executive of Brookfield Property Retail Group. Earlier, he was CEO of GGP, which was sold to Brookfield in 2018. He was also president of Wernerdo Real Estate and executive vice president of Forest City Ratner. (Wind)