WeWork's Adam Neumann's private jet grounded, up for sale
FOX Business' Susan Li discusses WeWork's change in executive management.
WeWork's Adam Neumann, who stepped aside as CEO earlier this week, will no longer to flying the friendly skies in the corporate jet.
The Gulfstream G650, worth about $60 million, is grounded and now for sale, according to a report by Business Insider.
Neumann, who reportedly used the jet to shuttle family members around, raised a red flag to some investors as the company planned its Initial Public Offering. Some viewed the excess as a sign of weak corporate governance.
Earlier this week, Newmann was forced out as CEO and put in a nonexecutive role at the company amid reports that investors, including SoftBank CEO Masayoshi Son, the company's largest, became concerned about his controlling shares of the company.
His ouster was first reported by The Wall Street Journal who also noted additional concerns over personal issues such as drug use and eccentric behavior.
FOX Business' inquiries to WeWork were not returned at the time of publication.
Late Thursday, the Wall Street Journal also reported that company insiders tied to Neumann will likely be ousted or re-assigned.
Neumann cashed out on a reported $700 million in stock options before the IPO, which is an uncommon move for someone with a startup going public. Founders usually sit on those options until after the IPO goes alive if they expect their company’s stock value to increase.
WeWork was at one point privately valued at $47 billion, a number that presidential candidate Andrew Yang called “utterly ridiculous” last month, despite posting losses of over $3 billion since 2016.
The estimated valuation was lowered twice, all the way down to $10 billion, before the IPO was indefinitely postponed on Sept. 16.