"Switching gears here we work Straw reaching fever pitch Theo Adam Newman stepping aside as a company looks to go public. Let's get to Deirdre both in San Francisco for more Deidra amyloid Melissa when I talk to Newman at the start of the year. You know key acknowledged that being a public company. CEO would be hard but he said you need to block out the noise and keep delivering on your long long-term plan but as you said Melissa that noise became a fever pitch that he could no longer ignore so now to we work executives already Minson Sebastian gutting him. They're taking over as co CEOS and Newman becomes non-executive chairman and key this is critical he seeds majority voting control so what is next for the company company does. Newman stepping down actually bring the company any closer to an IPO that is unclear right now the dramatic valuation reductions and the delayed IPO remember about happened before reports of atoms questionable behavior questions still surround the business model signing long term leases and then subleasing them on a shorter term what happens in a downturn downturn. There's also the problem of cash burn without another capital raise. We work cannot grow at the same rate. It has been growing over the last few years and it may need to scale back back. It's revenue growth guys which doubled in two thousand eighteen year over year is what separates it from the wgn is the region of the world without that kind of growth and without its frontman man. Does we work look more like an overvalued real estate play guys we're right back to where we started even without those even with those ingredients many were asking that question and that is unlikely to all go away now that there's a leadership change guys and and Deirdre there was a loan that was contingent upon an IPO so it sounds like that potential source of capital could be off the table at least for now yeah. This is why this was such a tricky balance for Adam Newman. He may need to go back to Masa and Softbank. That has that kind of money. It was a three a billion dollar. IPO raise it was expected and contingent on that was a six billion dollar debt facility so that's nine billion dollars that we work does not have to continue growing going next year all right Deirdre. Thank you Travolta in San Francisco and of course the company for two billion dollars in two thousand eighteen so the rate of cash burn is pretty high here. What do you make the last time we talked about. We worked up because some fascination with the company itself but what it speaks to in terms of what it could mean for the broader market stuff. I mean that we work if the stock is down sixty eighty five percent from its all time high effectively right from the forty billion dollar valuation of current levels I mean that's a pretty significant move. We would talk about this. Publicly traded the company. What does it mean in terms of what central banks have done. Tim and I have talked about this. Just means the central banks of flooded the systems with cash looking for those are really negative consequences winces of this but if you're looking to play stocks you know people will say you know the Nasdaq baby loses to this while the stock was actually on a lousy tape today so I think names in the exchange space still work despite what we just talked about ten. We were talking in the Green Room about why Adam Newman would do this would actually kind of come around and say I'll give up control. I'll do new x while the executive non-executive chairman etc one one explanation could be that he is acting his own self interest in that the value of his share Sharon company will go higher presumably if he removes himself as the problem here pointing to the personal loan that he actually has that could be another thing. We don't enough about it but so it looks like he had a five hundred million dollar personal loan from. I think J. P. Morgan ups and other so as of the filing he had drawn three hundred and eighty million Ryan dollars of that loan. I don't know how much stock he had against the loan right when they took out that loan. Things looked very different. Probably I believe than they do. Yes I think they actually look a little better for him today. I think in this current environment with him as the CEO and all of those sort of noise surrounding him and IPO was not doable and now I think depending on who they get. I think it is potentially doable. If you think about Uber and all the noise around Travis and then they brought in Dr who ended up being a great hire and you know so uber had a difficult difficult I pio but still they gotta done. I think with new management I think they could get and there's all this equity that needs. They want the company to stay afloat right they. They don't so so. I don't know that Newman had a choice. I don't think he did really quickly Softbank too. I mean who of wounds more of this and who owns more buber is a bright light on the biggest investor the smartest investors space top taking on the legendary things throwing so much money at the sector at the industry and and really skewing a whole lot evaluations that now I think in other places we're paying for"