WeWork: From Unicorn to Bankruptcy

By Mike Harmon
2025 | Case No. F323 | Length 24 pgs.
Finance

WeWork, once one of the most valuable start-ups in history, filed for Chapter 11 bankruptcy protection in November 2023. An innovator in the commercial real estate space, WeWork developed a “space-as-a-service” model, offering an increasingly mobile global labor force flexible work space, meeting rooms and connection services on demand in more than 500 locations worldwide. This case explores the combination of factors that fueled WeWork’s rapid growth and decision to IPO, and the factors that contributed to its fall into distress.

The case study also explores how WeWork interacted with financial markets, including the venture capital, public equity, and SPAC markets, and how ebbs and flows in these markets can have dramatic impacts on the valuation and corporate governance of firms. Finally, the case examines the U.S. bankruptcy process, and the tools available to fix the company’s broken balance sheet.

This case study would be informative in courses in finance, private equity, corporate restructuring, and debt management, as well as discussions on the various ways to value companies.

Learning Objective

This case is designed to help students understand the complexities of private equity, corporate restructuring and bankruptcy. Students discuss what made WeWork so popular among VC investors, the steps towards an IPO, and the financial strains that contributed to the decision to file for bankruptcy. Using this real-world example, students gain a better understanding of the U.S. bankruptcy process, and how different stakeholders have different incentives regarding the valuation of a distressed company’s assets.
This material is available for download by current Stanford GSB students, faculty, and staff, as well as Stanford GSB alumni. For inquires, contact the Case Writing Office. Download
Available for Purchase
The Case Centre
Ivey Publishing

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