'Smoke And Mirrors': CNBC Guests Struggle To Find Anything Positive To Say About WeWork

The WeWork saga continued into the new week, with the company's board of directors reportedly set to meet to discuss ousting co-founder Adam Neumann from his post as CEO.

'Bro Culture' To Blame?

WeWork's core business of offering office space is akin to a "timeshare company" and doesn't resemble a tech company, Joanne Lipman, an Institute For Advanced Study scholar and CNBC contributor said on "Squawk Box" Monday.

WeWork isn't even unique in the space and faces competition from dozens of rivals, Lipman said, adding that the whole IPO process is "smoke and mirrors."

The broader picture is the "bro culture" at play across venture capital firms and the tech industry, she said.

Neumann walked into a VC firm dominated by mostly male workers, "tells a great story" and forms a board that is all men, Lipman said. 

"This is like the best case I have ever seen for why you need diversity in your decision makers." 

WeWork's Board Also To Blame? 

WeWork's board of directors gave Neumann "complete control" through a dual stock class, Charles Elson, director of the Weinberg Center for Corporate Governance at the University of Delaware, also said on "Squawk Box."

The board allowed Neumann to run the company with a separate economic interest, he said. 

"The issue isn't what [Neumann] has done with it, the fact is he had it to begin with." 

From a legal perspective, there is likely little that can be done to remove Neumann from his post, Elson said. Investors can certainly try to do so, but "won't get anywhere," he said. 

On the other hand, the WeWork saga could be the defining event in motivating investors to say "enough" with dual class ownership structures, Elson said. 

A Potential Netflix Series 

WeWork's controversy should be written into a script and shown as a Netflix series, since it is among the most "spectacular implosions" the Street has seen in years, Wedbush's Joel Kulina said on CNBC's "Worldwide Exchange."

WeWork is far from a tech company, and it is "pretty obvious" to anyone who has done their homework the company is a "complete fraud on a lot of levels," he said. 

Major WeWork backer SoftBank invested around $12 billion in multiple investment rounds, with some of the investments made at much higher valuation levels, Kulina said. 

SoftBank has also invested in money-losing initiatives, including global ride-hailing and food delivery companies, he said. 

SoftBank, led by Masa Son, is now scrambling to save its reputation ahead of its Vision Found 2, Kulina said. 

Related Links:

WeWork Delays IPO Plans For Now

Analyst On WeWork: High Growth Equals High Cash Burn

Photo courtesy of WeWork.