Yahoo Finance's Brian Cheung and Akiko Fujita discusses the collapse of WeWork's valuation after the startup's founder Adam Neumann announced his new company Flow has been backed by Andreeson Horowitz.
BRIAN CHEUNG: Well, time now for our chart of the day. And it's just a flashback to a company that we've talked a lot about in the before times. And that is, of course, WeWork. And we know the story, right? SoftBank came in with the big money excitement over the IPO ensued, and then floundered as people found out the business model was maybe a bit flimsier than investors had hoped for. But now the company living a new life, albeit a very small one, after going public by a SPAC.
And the reason why we bring this up is because now Adam Neumann apparently back with the support of venture capital giant Andreessen Horowitz, Akiko. $350 million coming into a new project called Flow, which the details still a bit sparse on this. The "New York Times" reporting. It could be a living-- kind of co-living situation, like a WeLive in the before times. But, again, Adam Neumann getting money again. So--
AKIKO FUJITA: Look, there's-- I guess there's always a second chance, although this is probably Adam Neumann's, what, fourth chance? Fifth chance? By the way, he also has a company that fights climate change through cryptocurrencies. That didn't go too well given where crypto has moved.
BRIAN CHEUNG: Well--
AKIKO FUJITA: I mean, look, we've talked about this a lot. There's a lot of money to be deployed.
BRIAN CHEUNG: Although, in this time, not everyone has the money to do it. In fact, Andreessen Horowitz might be one of the few venture capital firms to be in a position to do this. But, again, just the name of it. And they-- a16z, by the way, had a blog post where they were essentially talking about how much they value Adam Neumann as a visionary. They think that the commercial real estate sector is going to be very different with this work from home situation. But, you know, we know what happened last time.
AKIKO FUJITA: It feels like we've heard this conversation before of Adam Neumann being a visionary. But, hey, I mean, we'll watch, right?
BRIAN CHEUNG: Yeah.
AKIKO FUJITA: Who are we to judge on initial-- I'm sure there's a lot of WeWork employees that--
BRIAN CHEUNG: I'm sure are watching this very closely. Well, we will have to see. We will-- forget it.