Legere reportedly staying put
According to CNBC, the allure of turning WeWork around wasn't enough to sway John Legere from his magenta throne.
Sources who asked not to be named claimed that Legere "has no plans to leave the company." Furthermore, he was never the first choice for the job, they say. Given the intertwined nature of SoftBank between Sprint and WeWork and the upcoming T-Mobile/Sprint merger, it's possible that a move between the two companies could be seen as a potential conflict of interest — not that it matters now.
Our original story regarding Legere's alleged candidacy to be WeWork's next CEO continues just below:
T-Mobile's boisterous and pugnacious CEO John Legere is in the news again, and this time, it's not for calling Verizon and AT&T "dumb and dumber" or cursing up a storm at some event. According to the Wall Street Journal, John Legere has been singled out as a possible pick for the top CEO position at WeWork.
WeWork, the shared-workspace company, has not been doing so well, and when you look at its business model, it makes sense why. As of June, WeWork has accumulated $47 billion in lease obligations with only $3.4 billion coming in from its clients. Compounding the matter is the length of time it takes before a space becomes ready, decreasing occupancy rate due to economic uncertainty, and a business model that can be easily replicated by competitors.
Besides this bleak financial outlook, WeWork is also undergoing personnel issues — co-founder leaving the company, an unusual situation of two co-CEOs in place, and the lack of a clear successor.
So how does John Legere fit in all of this? WeWork is hoping that Mr. Legere's experience in "fixing" companies, and his current stellar performance leading T-Mobile, will result in a turnaround for the company. Since he took the helms at T-Mobile, he raised the company's share price by 240% and overtook Sprint to claim the number three spot among the national wireless carriers.
The speculation of Mr. Legere's departure for WeWork has resulted in share prices dropping for both T-Mobile (2%) and Sprint (2.8%). This rumor also raises new questions about the viability of the T-Mobile and Sprint merger that is still underway.
According to the Wall Street Journal, WeWork is looking for a new leader to start as early as January, and talks are supposedly underway with Mr. Legere. Should John Legere depart T-Mobile for WeWork, the move will surely disappoint the legions of T-Mobile fans out there.
- Wall Street Journal