WeWork Isn’t The Only One Cleaning Up Its IPO Mess

Earlier last week, we actually said out loud, “Bitcoin (BITCOMP) has been pretty boring lately.” One day later, bitcoin fell 15% and traded below $8,000 for the first time since June. Oops.

In our defense, bitcoin had spent most of the month trading between $10,000 and $11,000. And volatility had reached its lowest point since April.

After the crash, our Adam Sharp wrote a terrific piece for our First Stage Investor members explaining why the price of bitcoin fell – and what you should do about it.

Bitcoin’s fall wasn’t the only big news story this past week. In fact, this was the first time in our history that a crypto, cannabis and startup story could have been our lead story.

On to the News Fix!


WeWork’s (WE) mess needs cleaning up: In last week’s News Fix, we wrote about WeWork postponing its IPO. This week, WeWork CEO and co-founder Adam Neumann resigned under pressure (CNBC). He is staying on as nonexecutive chairman. And his resignation has far-reaching consequences.

Prior to postponing its IPO, WeWork and its bankers were considering laying off one-third of its workforce and shedding business lines that have nothing to do with its core mission (The Information). And postponing the IPO doesn’t necessarily change that plan. Investors (and potential investors) are going to want to see strong proof that the new co-CEOs, Sebastian Gunningham and Artie Minson, are moving aggressively to reshape WeWork.

Gunningham and Minson aren’t the only ones with cleanup work to do. JPMorgan Chase CEO Jamie Dimon bet big on the WeWork IPO – and lost. Dimon has been courting Neumann for years. JPMorgan hasn’t been able to keep up with Goldman Sachs and Morgan Stanley in the competition for the top IPOs. And handling WeWork’s public offering was supposed to be JPMorgan’s ticket back to the bigs. Oops. Now Dimon has egg on his face and an IPO to save (The Wall Street Journal). And it does make you wonder – what exactly did Dimon know pre-IPO? And why didn’t he do more to prevent this embarrassing situation?

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