- Forbes estimates that former WeWork CEO Adam Neumann 's net worth has plummeted from $4.1 billion in March to $600 million as of October 10.
- The $3.5 billion fall in Neumann's fortune was caused by a drop in WeWork's evaluation following its botched IPO , Forbes' Samantha Sharf reported.
- WeWork cofounder Miguel McKelvey also lost his membership in the three comma club between March and October, Forbes estimates.
Adam Neumann is no longer a billionaire, Forbes now estimates.
The former WeWork CEO's net worth has plummeted to $600 million, the magazine estimates, paralleling the plunging valuation of his co-working empire following the company's up-and-down IPO adventure that saw the company whipsawfrom a $47 billion valuation to talk of bankruptcy in just 6 weeks . Forbes' Samantha Sharf also reported that Neumann's cofounder, Miguel McKelvey, has also lost his billionaire status.
The $3.5 billion drop in Neumann's personal net worth was the result of the declining value of Neumann's 18% stake in WeWork, Forbes reported. WeWork was valued at $47 billion in January following an investment from Japanese investment firm Softbank. However, the company reportedly sought a valuation as low as $10 billion in September as public scrutiny over its steep losses and leadership structure threatened its IPO . Forbes now estimates that the company is worth "at most $2.8 billion."
A representative for Neumann declined Business Insider's request for comment on whether Neumann's net worth had fallen below $1 billion.
The Forbes calculation of Neumann's net worth includes:
- $504 million stake in WeWork, and
- $500 million he profited from stock sales,
- minus $380 million in debt disclosed in WeWork's S1 filing.
Forbes does not believe that either Neumann or McKelvey who the publication says is now worth $400 million will likely rejoin the three comma club.
Neumann founded WeWork in 2010 alongside his now-wife Rebekah Neumann and Miguel McKelvey. Concern from potential investors over the company's finances and corporate governance issues pushed Neumann to resign as WeWork's CEO on September 24.
Under Neumann's leadership, the company was plagued by a party culture that included alcohol-fueled company retreats and little work-life balance, Business Insider's Meghan Morris and Julie Bort previously reported .
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Read the full report from Forbes >>
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SEE ALSO: WeWork cofounder Rebekah Paltrow Neumann is stepping down from her roles at the company. Meet the former actress, who is former CEO Adam Neumann's 'strategic thought partner.'
DON'T MISS: Meet Masayoshi Son, the Japanese billionaire whose SoftBank mega-fund has been reportedly involved in asking Adam Neumann to step down from being WeWork CEO