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Here’s the latest about WeWork, Adam Neumann, IPO prospects, and more

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  • WeWork parent The We Company has been laying the groundwork for an initial public offering. The SoftBank-backed coworking firm was valued at $47 billion in its last fundraising round. But now it’s mulling a massive valuation cut to pull off an IPO, according to media reports.
  • CEO and cofounder Adam Neumann has been in the spotlight for his unusual pitches, accounting methods, and potential conflicts of interest, as well as a range of far-flung investments with WeWork money.
  • Business Insider reports regularly on the latest developments at WeWork. You can read our stories by subscribing to BI Prime.

Here’s what we know about what’s going on inside WeWork right now:

The latest

Financials and real estate

  • Here’s what we know about Fibra Uno – the Mexico real estate company that’s WeWork’s biggest landlord. It highlights how quickly the co-working company has been growing overseas.
  • We got a peek at WeWork’s top landlords. Here’s who is most exposed to the fast-growing, but money-losing, coworking company as it prepares to IPO.
  • WeWork’s CFO says it will generate $2 billion in profit on the desks it’s opened this year, and it shows the importance of the ‘space-as-a-service’ model
  • WeWork’s ‘entirely new, nonsense’ way of evaluating its profits is eerily similar to the tech bubble
  • The past 4 years of WeWork’s pre-IPO financials show just how important cash flow is to the company’s growth
  • WeWork reported its financials for 2018 and both its revenue — and losses — doubled
  • One of WeWork’s buildings is profitable, and the company says it’s a vindication of its model
  • WeWork documents reveal it owes $18 billion in rent and is burning through cash as it seeks more funding

Coworking rivals

Road to IPO

Neumann’s leadership

  • These are the unusual ways WeWork founder Adam Neumann has made millions, and stands to make more, from his $47 billion company about to go public
  • WeWork details CEO Adam Neumann’s web of loans, real-estate deals, and family involvement with the company
  • Lots of extremely successful founders in Silicon Valley cash out early. But WeWork’s CEO pocketing $700 million is still far from normal.
  • WeWork’s CEO says the way it rents out office space makes companies’ financials look better. Some experts aren’t sure how legitimate the pitch is.
  • WeWork’s CEO explains why he thinks his $47 billion company is recession-proof and how he keeps his ego in check as a young billionaire
  • WeWork CEO Adam Neumann has reportedly made millions of dollars by leasing office space to his own company

SoftBank’s role

  • WeWork’s CEO raised $4.4 billion from a Saudi-backed fund, but said going forward he’d consider declining investments on moral grounds
  • How WeWork’s CEO grew a $10 billion relationship with SoftBank CEO Masayoshi Son, whom he calls ‘Yoda’
  • It took a day for WeWork’s CEO to recover from the shock of a $16 billion SoftBank investment falling apart
  • SoftBank has slashed a planned $16 billion mega-investment in WeWork after facing objections and will now invest $2 billion
  • SoftBank is in talks to invest $15B to $20B in WeWork for a majority stake

Deals

  • WeWork’s tech head explains why the office provider is buying a building access app used by top landlords
  • Here are all the wild things, from wave pools to turmeric coffee creamer, that WeWork’s surfing founder has invested in
  • WeWork acquires $249 million office-services startup Managed by Q as it goes after larger business customers
  • $20 billion startup WeWork continues its shopping spree with $200 million for Meetup
  • WeWork just led a $32 million funding round for a female-run startup that’s basically a social club for women

Partnerships and other businesses

  • Rent the Runway now has drop-off locations at WeWork offices in 6 major cities — here’s how it works
  • A $20 billion startup that rents office space to millennials is opening a grade school inside its offices
  • Inside WeWork’s WeLive, where millennials squeeze into tiny apartments to take advantage of perks like Sunday dinner, daily happy hours, and morning yoga
  • The most valuable startup in New York City just opened its first gym to compete with Equinox — see what it’s like inside
  • Mastercard partners with WeWork to pilot office payments



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VIDEO: James Harden Euro step not a travel — here’s why

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James Harden is often criticized for his signature step-back three that many NBA fans argue should be called a travel.

But most recently, it was a Euro step that had fans tripped up.

During his 38-point performance against the Utah Jazz Saturday night, the eight-time All-Star Euro-stepped his way past two defenders en route to an easy two points. Twitter immediately erupted into a flurry of posts calling for Harden to get whistled for a travel on the play, but the layup stood regardless — as it should have.

 

Though it appeared to many viewers — including the Jazz announcers on the game’s broadcast — that the league’s leading scorer had taken three steps after picking up the ball, the NBA rule book suggests that Harden’s move was completely legal.

Like his signature step-back, the permissibility of Harden’s Euro step hinges on a “gather” step. For a player dribbling the ball, the gather, according to the league’s rules, is “defined as the point where a player does any one of the following:

“1. Puts two hands on the ball, or otherwise permits the ball to come to rest, while he is in control of it;

  2. Puts a hand under the ball and brings it to a pause; or

  3. Otherwise gains enough control of the ball to hold it, change hands, pass, shoot, or cradle it against his body.”

Further, the NBA rule book specifies how the gather relates to the league’s traveling rules.

“A player who gathers the ball while dribbling may take two steps in coming to a stop, passing, or shooting the ball. The first step occurs when a foot, or both feet, touch the floor after the player gathers the ball.”

For all intents and purposes, after is the key word here.

When applied to the Harden Euro step in question, the NBA rules on gathering appear to indicate that the referees were correct in not issuing a traveling call. Though it’s admittedly a close call in real-time, Harden’s left foot is clearly down before he begins to pick up, or gather, his dribble.

Screen_Shot_2020 02 24_at_12_24_48_PM

His foot is completely down before gathering the ball.

ESPNNBA/Twitter


Technically speaking, Harden could have legally continued dribbling at this point, so the step shown above doesn’t count towards his two-step allocation after gathering the ball. Fans and the Jazz announcers mistakenly labeled the planted left foot as Harden’s first step even though it came before he gathered the ball.

Harden fully picks up his dribble just before planting his right foot as his first official step. He then returns to his left foot and elevates for the layup, thereby limiting himself to just two steps and staying within the bounds of the league rules.

The Rockets left Salt Lake City with the 120-110 win thanks in large part to a combined 72 points from Harden and Russell Westbrook. They travel to New York to take on the Knicks at Madison Square Garden Monday night.





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10 things you need to know before the opening bell

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Kevin Lamarque/Reuters

Here’s what you need to know before the markets open.

1. Global stocks tank as investors brace for a coronavirus pandemic. The flu-like illness has now claimed lives in Iran, Italy, and South Korea.

2. Warren Buffett is cheering the current selloff, saying investors ‘should want the stock market to go down.’ “That’s good for us actually, we’re a net buyer of stocks over time,” the billionaire investor and Berkshire Hathaway CEO said in a CNBC interview on Monday.

3. Here are the biggest takeaways from Warren Buffett’s annual letter. The Berkshire Hathaway CEO discussed accounting rules, stock buybacks, boards of directors, acquisitions, succession plans, and market performance.

4. US sees no material impact from virus on US-China trade deal for now. Treasury Secretary Steven Mnuchin told Reuters he does not expect the coronavirus outbreak to have a material impact on the first phase of the two nations’ trade deal, although he warned that could change as more data becomes available in coming weeks.

5. Goldman Sachs pleads not guilty in Malaysia over 1MDB bond sales. Three units of the banking titan pleaded not guilty to charges of misleading investors regarding $6.5 billion in bond sales that Goldman helped raise for state fund 1Malaysia Development Berhad (1MDB), Bernama state news agency reported on Monday.

6. Primark owner warns coronavirus threatens clothing supplies. Associated British Foods said there was a risk of supply shortages on some lines later this financial year if delays in factory production in China are prolonged due to coronavirus.

7. PepsiCo buys Chinese snack brand Be & Cheery for $705 million. “Be & Cheery adds direct-to-consumer capability, positioning us to capitalize on continued growth in e-commerce, and a local brand that is able to stretch across a broad portfolio of products, through both online and offline channels,” a PepsiCo executive said.

8. Stocks are tanking. European equities dropped with Germany’s DAX down 3.4%, Britain’s FTSE 100 down 3%, Italy’s FTSE MIB down 4.5%, and the Euro Stoxx 50 down 3.4%. Asian indexes closed lower with China’s Shanghai Composite down 0.3%, Hong Kong’s Hang Seng down 1.8%, and South Korea’s KOSPI down 3.7%.
US stocks are poised to open lower. Futures underlying the Dow Jones Industrial Average and S&P 500 were down 2.4%, while Nasdaq futures slid 2.6%.

9. Some big earnings are coming out. HP, Intuit, and Palo Alto Networks are among the highlights.

10. There’s some key data on the docket. Look out for national activity and manufacturing figures.





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Bernie Sanders wins Nevada caucuses: live updated results, vote counts

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  • Sanders wins the Nevada caucus with 87% of the results reporting as of 7 p.m. Pacific Time and 10 p.m. Eastern Time on Sunday, February 23. 
  • The Vermont senator has now officially won the popular vote in the first three primary contests of Iowa, New Hampshire, and Nevada. 
  • Results have been released slowly by the Nevada Democratic party to avoid a similar situation from Iowa.
  • Visit Business Insider’s homepage for more stories.

Nevada’s caution in reporting results meant that only about 60% of results were announced the day of the caucus, leaving Democrats waiting for the final outcome and complete delegate reckoning.

Sanders holds a decisive lead over his opponents with 87% of precincts reporting — to see how his performance is translating to delegates, follow along with our live delegate tracker here. 

Nevada Democratic caucus live results 

Here are the returns from the final ballot results:

 

Here are the results from the first ballot, or alignment:

 

The third — and most important — set of results are the county convention delegate equivalents, which will be converted into national pledged delegates.

 

These will update live over the course of the day as we get new results. 

Here’s how Democrats will elect their presidential nominee over the next several months

Catch up on live coverage from the caucuses: 

Caucus coverage:

Pre-caucus:

What’s at stake in the Nevada caucuses: 

Nevada only accounts for 36, or 0.9% of the delegates allocated throughout the nomination process, but holds disproportionate importance by virtue of being the first state with a significant non-white population to express its voting preferences. 

Sanders has won nine and former Vice President Joe Biden has won two out of Nevada’s 36 pledged delegates so far with 23% of the precinct caucus results reporting as of 8 p.m. Pacific Time.

The first two states in the process, Iowa and New Hampshire, are both over 93% white. In Nevada, however, just 49% of the population is non-Hispanic white, compared to 29% that is Hispanic or Latino of any race, 10% that is African-American, and 9% that is Asian. 

Of Nevada’s 36 national pledged delegates:

  • 23 are allocated proportionally between the state’s four congressional districts. The first district gets five delegates, and the three others are allocated six delegates each. 
  • 8 at-large and 5 PLEO (party leader and elected official) delegates will be decided and allocated based on the statewide popular vote. 

nv delegates by cd



Ruobing Su/Business Insider


Like in most other states, candidates must break 15% of the vote in a given district or voting area to win any delegates at all. 

Unlike a regular primary, Nevada is a caucus, meaning that people will gather in communal locations to express their preferences for president. The caucuses have two rounds of preference expression, or alignments, meaning caucusgoers have an opportunity to shift their support. 

Caucusgoers whose first-choice candidate does not meet the 15% viability threshold in the first alignment can either switch their support to a candidate who is viable, try to make their chosen candidate viable on the second round, or be uncommitted, meaning the final results could be unpredictable. 

DELEGATE COUNT: Here’s who’s winning the race for the 2020 Democratic nomination

The results of Saturday’s Democratic primary are likely to be particularly crucial for Sen. Elizabeth Warren and former Vice President Joe Biden, both of whom are hoping for a strong comeback after their fourth- and fifth-place finishes in New Hampshire.

Who does the polling say is ahead?

The state of Nevada and its presidential caucuses, in particular, are notoriously difficult and expensive to accurately poll.

As Vox recently reported, a higher-than-average proportion of the electorate in Nevada works in the casino and nightlife industry, meaning that their population has higher turnover and is more fluid than in most states, giving pollsters a small base of registered or likely voters to work with.

And many of those with jobs on the Vegas Strip or in other nightlife or hospitality-related careers work night shifts or outside the bounds of a typical nine-to-five schedule, making them much harder to reach by telephone. 

On top of that, Nevada only started using presidential caucuses instead of primaries in 2008, meaning that pollsters have somewhat limited data with which to build accurate models and weights for their caucus surveys, a problem compounded by the fluctuating population in Nevada.

According to FiveThirtyEight’s aggregated tracker of Nevada polls, Sanders currently holds a comfortable lead, polling at 30% on average with the other candidates mostly far behind. On the day of the caucuses, Buttigieg is at 15.3%, Biden is at 14.4%, Warren is at 12%, Steyer at 10.2%, and Klobuchar is at 9%.

But the additional unpredictability of caucus turnout, the ranked-choice system used in early voting, and the re-alignment process in the caucuses themselves mean that the final result could be quite different from what initial polls indicate. 

While Nevada was once a battleground state, it’s been swinging into solid Democratic territory for the past several election cycles. Former Democratic nominees President Barack Obama and Hillary Clinton comfortably carried the state in the 2008, 2012, and 2016 general elections, and five out the state’s six congressional representatives are now Democrats. 

In 2016, former Democratic nominee Hillary Clinton won the Nevada caucuses with 52.6% of the vote compared to 47.3% for Sen. Bernie Sanders. 

Read more:

Bernie Sanders suggests Russia might be behind the ‘ugly’ online attacks from ‘Bernie Bros’

US officials told Bernie Sanders Russia is trying to help him win the Democratic nomination

Watch the top 5 moments of Nevada’s combative Democratic debate

Here’s who will be onstage for the February 25 Democratic presidential debate in South Carolina and how to watch it



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