This morning it was reported that SoftBank (SFTBY) would take control of WeWork. The deal is expected to value WeWork at about $8 billion, a small amount compared to its $45 billion valuation earlier this year, when the company was planning on going public. CEO Adam Neumann will receive a buyout and is expected to step down after the deal is completed.
Jim Cramer gave his thoughts about what went wrong with WeWork:
"You know, one of my themes Katherine, is, is that as the year progresses, you're in an IPO window and eventually you've got too many biotechs, you have too many cloud stocks, you've got too many cybersecurity stocks and now we have too many. WeWorks, you know, too many accompanied, by the way, let's just understand each other. Having someone having leased is great idea, but it was, it was a leasing company, and I'm not going to diminish the fact that it was, at one point this fabulous story because it was growth, growth, growth, but it also was debt, debt, debt. And this guy Adam made out a little too well, had, I think he had absolutely played it the way that the vast majority of people would have played it this wouldn't have played out like this."
Watch the video above to see what else Jim had to say about WeWork.
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