London Daily

Focus on the big picture.

Billionaire Oracle cofounder Larry Ellison calls embattled WeWork 'almost worthless'

Billionaire Oracle cofounder Larry Ellison calls embattled WeWork 'almost worthless'

Oracle's billionaire cofounder and CTO, Larry Ellison, said WeWork is "almost worthless" in a scathing indictment of the company's business model. Ellison offered a scathing take on WeWork's business model: "WeWork rents a building from me, and breaks it up, and then rents it. They say, 'We're a technology company, and we want a tech multiple.' It's bizarre."

The billionaire Oracle cofounder and Chief Technology Officer Larry Ellison reportedly called WeWork "almost worthless" in a scathing indictment of the embattled office-coworking company.

He made the statement during a meeting with entrepreneurs on Wednesday at his home in the Pacific Heights neighborhood of San Francisco attended by Barron's.

"WeWork rents a building from me, and breaks it up, and then rents it," Ellison said, according to Barron's. "They say, 'We're a technology company, and we want a tech multiple.' It's bizarre."

 Ellison's statements came amid weeks of news stories battering WeWork as the company attempts to go public.

 The company was privately valued at $47 billion when it filed an S-1 in mid-August for an initial public offering. One month later, WeWork's parent company was said to have been mulling going public at a valuation of $10 billion to $12 billion.

It has paused its IPO - it was originally supposed to go public this month but is now said to be aiming for the end of the year.

The story of what happened is complex and ongoing, but one particular thread stands out from the past month of WeWork news: CEO Adam Neumann's repeated self-dealing while leading the company.

 The company's S-1 revealed that Neumann owned several properties that WeWork leased from him and that he sold the rights to the word "We" to WeWork for nearly $6 million. He has since given back the money for the naming rights and committed to giving his profits from the related real-estate deals back to the company.

WeWork and Neumann have received plenty of criticism in the past month, including from Scott Galloway, the New York University Stern School of Business professor, bestselling author, and tech-industry pundit, who deemed the company "WeWTF" after it filed its S-1.

 Former Twitter CEO Dick Costolo piled on this week as well.

 "This is not the way everybody behaves," Costolo told The Wall Street Journal in a profile of Neumann. "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."

A WeWork representative declined to respond to Ellison's criticisms.

Newsletter

Related Articles

London Daily
0:00
0:00
Close
Couple in West Virginia Charged with Human Trafficking of Adopted Children
WikiLeaks Founder Julian Assange Returns to Australia as a Free Man
Hollywood Crew Union Strikes Deal With Major Studios on Pay Raise, AI Use
Dutch PM Mark Rutte Appointed as NATO Secretary General
Australia's Diplomacy Secures Julian Assange's Freedom
ICC Issues Arrest Warrants for Russian Military Officials
Spanish Police Investigate Missing UK Teen Case in Tenerife
Spanish Police Dismantle International Drug-Smuggling Network
Mark Rutte to Be Appointed Next NATO Chief
Four Men Arrested for Trespassing on Prime Minister Rishi Sunak's Country Estate
Heatwave Causes Thousands of Heatstroke Cases in Karachi, Pakistan
EU Initiates Membership Talks with Ukraine and Moldova
UK Police Officers Implicated in Election Betting Scandal
King Charles Hosts Japan's Emperor Naruhito for State Visit
Top-Secret US Underwater Drone 'Manta Ray' Revealed on Google Maps
WikiLeaks founder Julian Assange stops in Bangkok on his way to a US court and later freedom
Homeless Man Turns in Wallet with 2,000 Euros at Amsterdam Station
Apple Faces EU Charges Over Digital Markets Act Violation
Macron Warns of Civil War Risk as French Elections Approach
Julian Assange Freed After US Plea Deal
Chaotic Portugal Win Over Turkey at Euro 2024
Global Headlines: Hajj Heatwave Tragedy, Flynn's Family Enterprise, and Rising Geopolitical Tensions
Political Shifts in France, Legal Battles in the UK, and Public Protests in Israel
UK's Richest Family Convicted for Exploiting Servants
Hollande Declares End to Macron’s Political Ascendancy
Hindujas Appeal Swiss Court's Human Trafficking Verdict
Prince William Celebrates Birthday at Taylor Swift Concert
Singapore to Implement Screen Time Regulations for Children
Hello and welcome back. Here we are with your latest news update from around the world.
Hello and welcome back. Here are today's top stories from around the world, you don't want to miss:
UK PM Sunak and the Election Betting Scandal
Climate Activists Target Taylor Swift's Private Jet in UK
United States Bans Kaspersky Antivirus
US to Supply Taiwan with Suicide Drones Amid Rising Tensions with China
Bodyguard of UK Prime Minister Arrested for Alleged Election Betting
Global Displacement Crisis: Record Numbers in 2023
Muslim Community Leader Criticizes Nigel Farage for Undermining Muslims
Melinda Gates Discusses 'Horrible' Divorce from Bill Gates
Child Obesity Surge in England: A Deep Concern
U.S. Sues Adobe Over Hard-to-Cancel Subscriptions
Deadly Heat Wave Claims Dozens of Lives During Hajj Pilgrimage in Mecca
Here are today's top worldwide stories you don’t want to miss:.
World’s Largest Pilot Union Calls to Eliminate Terms Like ‘Cockpit’ and ‘Manpower’ for Equity
Woman Suing UK Intel Services Denies China Spy Allegations
Iran Sentences Nobel Laureate Narges Mohammadi to 1-Year Prison Term for Propaganda
News roundup
Good day, everyone! We've got some gripping stories for you today, spanning from the Middle East to Europe, and even a touch of Hollywood.
Britain’s Refugee Visa Rules Stranding Children in War Zones
UK Elections Predict ‘Electoral Extinction’ for PM Sunak’s Conservative Party
Italian Activist Ilaria Salis Returns Home After Election to European Parliament
×