A recent CNBC story said that SoftBank chief executive officer, Masayoshi Son's optimism in WeWork's growth potential, and a lack of dissenting viewpoints also led to the company being overvalued. ... Adding to WeWork's miseries were also fears of a recession on the horizon, and a global economic slowdown.

Was WeWork overvalued?

Skepticism about the We Company's lofty valuation is driven by skepticism not that the business model can work, but that even a successful version of WeWork would be a $47 billion company. Scott Galloway of NYU's Stern School of Business famously called it “the most overvalued company in the world.”

Why is WeWork not profitable?

WeWork's business is simple: Sublease space for more money than it pays for its leases. Once investors realized that its business model wasn't as innovative as its mission, the company's valuation plummeted. WeWork was headed toward bankruptcy before being bailed out by SoftBank (SFTBY), its largest shareholder.