but is this just, you know, multifamily reits by another name always the questions plaguing wework ih, sara, having covered it and going to a number of wework events at its peak and even interviewing adam neumann, he is this really grand thinker. he does have the ability to create a community in a way that few entrepreneurs can. i guess the main question is is he humbled enough? can he do it this time around? or is this more money being thrown at him that will lead to the same corporate governance problems the thing is we just don't know. we don't know what lessons have been learned but clearly marc andreessen thinks enough. >> that's i guess a boost here for the credibility. thank you, deirdre that's a to be continued deirdre bosa up next, one of the top retail analysts on wall street will be here to unveil his best stock picks ahead of earnings season for retailers. tomorrow we'll hear from walmart and home depot that story plus dan loeb's new stake in disney and a big drop in home builder sentiment when we ke u si t mkezone autonomous vacuus work continuously around the house, but

many of our offices are in wework space.le i cannot speak to any and all the opinions in the market about him, we are delighted users of the product that he helped create. so if he can do the same for residential real estate, good luck. emily: vishal garg ceo of better we will be watching following this new partnership with palantir. thank you for joining us. much more coming up after this break. this is bloomberg. ♪ emily: qualcomm is taking another run at the market for server chips in an effort to decrease its reliance on smartphones. the company seeking customers for a product stemming from last years purchase of another product, according to bloomberg sources. they say aws is one of the biggest server chip buyers and has agreed to take a look at what qualcomm has to offer. china is lashing out at a 52 billion dollar program to expand american manufacturing of semiconductors. an industry association says it contains elements that violate fair market principles. ed targets china's own efforts to build the chipmaking indus

that worked frequent a while with wework. of course, it kind of fell apart.hat we have now is much more conventional real estate company that a lot of investors lost a lot of money in. it is hard to understand why jason horowitz would be writing such a large check. maybe they see this as another longshot bed. mark endres is more successful than i am. >> they lost almost $9 billion on wework. why do you think that is not going to be his fate? >> adam neumann, if you read some of the published accounts, he was very effective at getting rich people out of their money. they have a soft spot for trolling. if you read between the lines of the blog post, it sounds like there will be some sort of crip that worked angle here. i think the jury is still very much out on whether or not that is going to work. it feels like we have we work with departments but a little bit of crypto mixed in. you be the judge if that is a good idea or not. >> the real question is in a valley where it is notoriously hard for some founders to raise money. why is it so easy for these founders

and one of the primary differences, if you think about office, is every wework had to be custom builtthere was a significant amount of custom tenant improvement dollars invested in those buildings. in the residential space, we go into existing apartments we don't invest any money in renovations or any changes to the building itself. we go in and furnish it with landings custom line of furniture that we actually design in house and partner with manufacturers to deliver into our apartments, so it's a very different concept. you know, zero long-term lease liabilities in our model. >> well, that's the key, i think, that we learned from wework that you don't want to be on the hook for the lease liabilities. is that a question you're getting from investors i know you're raising a lot of money, although adam neumann raised even more without launching from horowitz. >> i'm not sure how their business model works yet from the landing perspective, we started in 2019 after wework kind of had their challenges so we were able to take some of the learnings from that. but one of the keys was figurin

. >> i'm seldom right, but never in doubt >> meanwhile, should we talk wework. >> let's talk wework. with another company called flow. not a lot of details but they've raised a ton of money from andresen horowitz. the venture capitalist firm is reportedly investing, get this, $350 million into this company giving it a billion dollar valuation. all of this after newman was ousted as wework's ceo in 2019 yeah, now you can watch it. >> he's the star of movies mr. newman but he took a company -- there was a company, the valuation at one point of wework was in the $40 billion under softbank then it -- now in a spac, it went to $8 billion, now in a spac form it's like $4 billion. >> right and his model, there's something he proved it's that he can be an effective marketer, if nothing else what's astonishing to see this happen now it comes at the same week that [ inaudible ] is having himself another kind of celebrity money razor, but his spac he's having a more difficult time being able to attract investment and might have to return investor dollars. >> quickly, big shift in the banking, w

. ♪ emily: -- horowitz has just made one of its biggest ever bets on the man behind wework.irm writing its largest single check investment, $350 million, to a residential real estate startup founded by adam neumann. below is rethinking the entire value chain from the way things are purchased and owned to the way residents interact with their buildings, to the way revenue is distributed among stakeholders. joining me is max chapman. lots of tweets today. what is adam newman's angle? >> it feels like -- and again the details are so sketchy. that is the part of the reason there is skepticism, i feel like adam neumann is trying to do something similar to what he did with which was -- wework, which was commercial real estate, now we have apartments, and give it a tech sheen. that worked for quite a while. we saw the valuation climb to something like $50 billion. in then it fell apart. but we have now is a much more conventional real estate company that a lot of investors lost a lot of money and. it is hard to understand why andries horowitz would be writing such a check. you -- m

i actually went to a lot of the wework events where they would have all of their creators he is a very inspiring person. you can still create a good business you can spend too much you can have governance issues what are you hearing in the bay area here he is, bay area pretty critical of his fall last time around >> yes there are a couple factors at play the first i guess is looking at what happened to wework in the first place. the truth about wework is it was a cultive personality going too far and an issue of investors not frankly being as judicious as they could have been, as they should have been with the growth of the company the vast majority of investors on the board when they were going great were totally cheering for effectively redlining that business and it turned around and became a disaster we all shared some culpability to that culturally it's not something you can place on adam neumann's head the second thing to notice from my vantage point is there are certain problems that are really, really hard problems to solve and one of those is the fact that there is not nearly

. >> and it goes back to the wework thing now some wonder if wework the new version, 2.0, will have someis economy. >> we shall see. of course they lost mario as one of their key executives over there. i'm sure they'll miss him. thanks for watching "power lunch," folks. >> "closing bell" starts right now. we'll see you tomorrow >>> an upbeat start to the week has faded throughout the session. major averages wavering between gains and losses as we head toward the close the most important hour of trading starts now welcome, everyone, to "closing bell." i'm sara eisen the dow now is barely positive s&p 500 down a quarter of 1% technology is underperforming. information technology the worst performing sector. that's what's dragging the nasdaq down about a quarter of 1% the semis, nvidia's warning, we'll hit on that in just a moment but that is taking its toll small caps doing well, up three-quarters of 1% today

now shamed him backing adam neumann from the infamous wework thing, 350 million.hite picket fence, notion of the american dream. do you worry about that at all? >> i mean i do because charles, let's think about how you build generational wealth. for do many generations it has been owning your own property, being able to leverage that, instead of paying rent, not being able to build equity. you build equity you can borrow against to send your kids to college or make some bigger purchases, even to buy other property and become a small investor, start a business. so when, i worry when it is very difficult for first-time homebuyers to get into this kind of market. charles: yeah. >> i'm also not bought into the idea that the same guy who took wework as an idea and really was not able to turn a profit is somehow going to solve the challenge of affordable housing. charles: yeah. >> what we actually need is zoning reform in this country. when you have a limited supply of being able to build, maybe it is time to deregulate areas to make it easier for different types of hou

does the mirage of adam neumann having contributed at one point to wework, did that help him get thement that, oh, someone was able to turn around his just disaster of a company? >> i just think people want to see money fly around. maybe we're not in a recession. that's all i can say. >> insider linette lopez, thank you very much for your insights this morning. thanks for being on. >>> still ahead this hour, in her concession speech on tuesday night, liz cheney warned that u.s. democracy is at a tipping point. is there something everyday americans can do about it? our next guest is a professor at stanford university who says he has some scientifically proven ways to help. >> bravo. >> we'll find out what they are next. we're back in one minute. are next we're back in one minute tric shs or sharp, stabbing pains. ♪♪ this painful, blistering rash can disrupt your life for weeks. a pain so intense, you could miss out on family time. the virus that causes shingles is likely already inside of you. if you're 50 years or older, ask your doctor or pharmacist about shingles. >>> it's time to

and led his company wework to financial ruin.e epic rise and fall of adam newman formed the basis of the series did not work you will sink the ship. nearly 2 billion all this did not prevent the infamous billionaire from getting investments of $ 350 million for a new startup flow again, while no one really knows anything about the project itself. it is known that we are talking about a new housing rental service newma, for this i bought 3,000 apartments. all over america, this is another adventure. might turn out to be a scam again or a complete failure of management in the sense that exists today, and today many words change the meaning of whether scam remains police recession scam or both of these definitions can be explained through the concept of poor management, in other words, complete irresponsibility, it would be worth considering. was the war company ever a technical start, of course, with such a financial assessment. yes, there is also the support of the world's largest investors or the theme of zionisan and software, b

we know holdings include doordash, wework, coupon grab, they all suffered and they follow a key metricdi: incredible that softbank continues to not be able to catch a break even as investors cycle back into technology stocks and earnings recently have been positive. the alibaba effect. primary listing attempts in hong kong added a little shy into that part of the holdings but when you look at other pressures, operational pressures softbank has been under, a talent drain as well adding to all the pressures to deliver. they are losing a growing number of top executives at softbank and more responsibility on the founder's shoulders as we see the outlook generally for the japanese conglomerate turning dark. the total number of top-level departures from vision fund is at least 10 since 2020 so he's kind of on his own as he tries to plot a new course back to success for the company. you can turn to your bloomberg for more on softbank earnings and all the stories you need to know. you can get commentary analysis from experts. let's get a quick check of headlines. [indiscernible] the transacti

silicon valley, writing his deist -- his biggest check ever to controversial reworking founder -- weworker making his new startup a unicorn. the same one that had a peak valuation of the to billion dollars in a plummeted to a billion dollars, lots of people losing their jobs and quite a few investors losing money. people always ask me why i defend toxic female offenders, my association with female leaders that may have done bad things, is because women leaders are held to standards men are not, men get rid of the million dollars and when we get ostracized from tech, if i don't speak up, who will? -- men get $350 million and women get ostracized from text -- tech. >> i thought you would mention my viral joke tweet. emily: that was more inside baseball. >> come degree is my next act. -- comedy career is my next act. i do not think anyone a surprise adam neumann was able to raise mega funding. what struck accord was that especially to women founders, he was given a second chance when so many underrepresented minorities and women are not given a first chance. whether the big bold ideas and f

softbank has been talking about this approach towards investment , since the wework debacle a few yearsgo. we have not seen any signs of that. what concerns now, despite the strength of the capital -- capital strength of the company's other gains, using ¥400 billion of cash rates from alibaba for ford contracts to buy back -- forward contracts to buy back shares. it is ludicrous. in this kind of situation want to deleverage, pay off debt, help the poor folio as much as you can and hope for the best that the ark it will rebound. -- market will rebound. maybe restarting at some stage or even the vc market showing some signs of life. i do not see any essence learned. -- lessons learned. these big because they will make in the vision fund, the them very stretched and how they will manage the investments made such -- thus far with less and less people. we are not convinced. >> there are issues, the possibilities of overleveraged and also those margin calls. >> margin calls are deathly a big concerns -- particularly a big concern expert with -- with alibaba. it was in march where alibaba shar

we know wework for example it was good when the tech market was going off high valuations. now they come under significant pressure masioshi son is making investment not just for the sake of it, but in companies that it does believe has a future and has strong balance sheet and has a big market to address as well. that's not necessarily the case with the investment that softbank has made. >> argen, great to have you thi morning. >>> sticking with the tech space. elon musk challenged the twitter ceo to a public debate he asks if the spam account numbers were accurate. musk said if confirming the number of accounts is accurate, he should go ahead a source close to the company told cnbc a debate is not happening outside of the pending trial in october. >>> and coming up, pointing the finger at russia to reinstall a key turbine to boost gas fwslo to europe. his thoughts next. >>> welcome back to the program. german residents reduce energy by 1/5 to avoid a gas shortage this year. muller told a german newspaper it would be legitimate to introduce austerity measures to save jobs.

are we still in the vc winter or is the wework move a sign of, i don't know, a new spring? joining us now in a fox business exclusive greycroff founder allealanpatricof. >> he went for 47 billion down to 4 billion currently and here he is back again with the same concept of a capital intensive way of going into a position. greycroff did it a few years ago in a company called landing, which is almost the same model from what i've seen in flow. now there's two years of experience and adam could learn a lot from them, but he's probably not prepared to share in terms of whether you do this in accessing real estate owners existing vacant portfolio or go in and buy up properties, buy up apartments, which he's seemed to have done. that'll make landlords very happy disposing of apartments to adam newman, who can be their renter in a lot of places. liz: but, does it surprise you that once burned, not at all shy when it comes to venture capitalists who know that he spent probably -- look, it doesn't mean he can't turn around and revive his reputation in some way shape or form, but it

can look at silicon valley, for example, in a recent example you have the former founder and ceo of weworkcompany into the ground. they lost 40 billion dollars, but he got another 300 and $50 million worth of investment. he was able to fail not once but twice in a private venture. that was due to his privilege, and being a white man. you have a privilege that's exist in this country by the color of your skin. and look, whether or not we want to actually talk about the honest history of our country or not is something totally different. if you want to talk about people's place in this country, because of who they love, or the color of their skin, or who they pray to, then we really have to have a honest conversation, we've never dealt with the issue of race. and what ron desantis wants to do in the state of florida is make us dumber. ron desantis is pushing is not wokeness, it's not white privilege, it's anti-intellectual-ism. and i've said this before, i'll say it again, not everybody wants to be as anti intellectual as ron desantis. and the fact of the matter is this, he does not want ind

wework wasn't a tech stock either it never deserved the tech stock type of multiple right now it's probablythe subscriptions have stayed strong they have found a core set of customers following serious fitness people and they should serve that customer and that needs to move from product sales to the subscription service sales and get as broadly distributed as they can for their service business >> i guess we'll see if that works. what about zoom? arguably, it doesn't have the same inventory challenges and is down quite a bit is their pivot more possible >> oh, i think, they're a reinvention which is the suite of software with microsoft, and it's a really weak idea. you're not going to beat microsoft at this game you can raise price here and lower price there. they need a better reinvention they should be able to figure it out. for example, having a videoconference deal that's much more immersive than just a talking head in the screen they need to innovate there or maybe they should think outside of the box and say we're a realtime video streaming platform, what else can we do with this thi

wework strategic because it gives every local community individually and our nation collectively the opportunity to raise up the voice of the majority and drown out the voice of the minority. chief hopkins reference to this earlier, i have been involved in civil rights all of my life. i led the first -- first march i ever lead when i was 16. i am 45 now. i do not know who these defund the police folks are, they do not fit or come from the traditional leadership i am in like jeffrey jackson, they are not up that hill. i do not know who they are. i think, frankly, that whole crowd, those who are demonizing law enforcement are left concerned about justice and more concerned about division. oftentimes, a lot of folks choose war because this is more profitable. when i was marching, i will do it again. this time, i will do it with law enforcement. most of the time, we found out over maturity and growth, most law enforcement agencies and their executives want to do the right thing. they are as concerned as anyone else. the challenges, we -- challenge is, we do not have the open line of comm

joining the wework board.y're on the right path. stuart: shopfi in the news? lauren: yeah, they help small businesses do ecommerce. stuart: there's plenty of wins today. that's the bottom line. nice day to report financial news. the market is going up. lovely. thanks, lauren. congressman jerry nadler says police should get more federal money. that's a change of tune from a couple years ago when he wanted a cup funding. think that has something to do with his reelection bid. iranian operatives said they are launching a bid to do mike pompeo and a ceo getting major backlash after posting this crying selfie on his social media saying he was heart broken after laying workers off. that is next. this is xfinity rewards. our way of showing our appreciation. with rewards of all shapes and sizes. [ cheers ] are we actually going? yes!! and once in a lifetime moments. two tickets to nascar! yes! find rewards like these and so many more in the xfinity app. first psoriasis, then psoriatic arthritis. even walking was tough