WeWork Cos.’s CEO Adam Neumann has reportedly cashed out more than $700 million from the company ahead of its expected initial public offering.
According the Wall Street Journal which spoke with “people familiar with the matter,” the shared office-space giant co-founder sold some of his stake through a mix of stock sales and debt.
He still remains the its largest single shareholder, people said, but it couldn’t be learn the exact size of his current ownership.
He is said to have invested the proceeds in real estate and startups.
The WSJ noted that investors in startups have “generally frowned upon” founders who sell large chunks of stake ahead of IPOs “because it raises questions about their confidence in the company.”
But their sources said this is not the case here, and that Neumann remains “bullish” about the company’s long-term prospects.
The news comes at a time when WeWork is expanding at a breakneck pace in North Carolina and around the globe.
In less than two years, the firm has opened five locations in the Tar Heel State – one in Raleigh, two in Durham and another two in Charlotte. A sixth office in Charlotte is expected to come online next month.
Though it’s revenue more than doubled last year to $1.8 billion, according to financial results, it’s also hemorrhaging money – around $1.9 billion in losses – to fund the growth.