WeWork Taps Sandeep Mathrani to Be Its CEO

Andrew Cummings
February 3, 2020

Minson and Gunningham will remain with the company through a transition period.

WeWork plans to name Sandeep Mathrani as its new chief executive, according to a person familiar with the matter.

Currently, Mathrani serves on the executive board and the board of trustees for the International Council of Shopping Centers, the executive board and 2019 chair of the National Association of Real Estate Investment Trusts, as well as the board of directors for Host Hotels & Resorts Inc.

Marcelo Claure, We's executive chairman, recruited Mathrani and will be his boss, according to the Journal.

Whether or not Mathrani will continue shedding WeWork's image as a tech company remains to be seen, but as CNBC noted last month, prior to his appointment, WeWork has been selling off some of the tech-focused assets they acquired, like Teem. WeWork reported a third quarter loss of $1.3 billion from a revenue of $934 million in 2019. "I am honored to be joining WeWork at this pivotal time in its history", Mathrani said in a statement.

WeWork further said that Mathrani will report to Executive Chairman Marcelo Claure adding that Mathrani's deep real estate experience and skills are complementary with those of Claure."Over the past 100 days since I joined WeWork, we have made tremendous progress strengthening the business".

WeWork has taken its first significant step in the post-Adam Neumann era, naming a new chief executive officer to run a company whose challenges abound.

New year, new beverage policy, new CEO.

Before this, Mathrani spent eight years working as chief executive of General Growth Properties, which was one of the largest mall operators in the USA, before it was acquired by Brookfield for $9.25bn in 2018. WeWork was valued as high as $47 billion at one point. Mathrani will join the company on February 18, with Minson and Gunningham staying on through a transition period. This plan includes achieving profitability on an adjusted EBITDA basis by 2021, and reaching positive free cash flow by 2022.

But after public investors balked at paying anything near that valuation amid questions about WeWork's governance, Mr. Neumann's quirky stewardship and the company's business prospects, the IPO was pulled and SoftBank put in new money at a valuation of $8 billion.

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