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Home / Business / We are working to delay the IPO, as there is a suspicion that it is not a $ 47 billion tech company

We are working to delay the IPO, as there is a suspicion that it is not a $ 47 billion tech company



Photo: Drew Angerer (Getty Images)

A An iconic real estate company that offers kombucha on tap and desperately wants to be regarded as a technology company – it may not be listed on the stock market soon.

WeWorks parent company, We Company, is "expected to postpone its creation of public offering," the Wall Street Journal reported Monday, amid concerns among investors about the true value of the company and persistent corporate governance issues. While the Coworking Space company had expected to go public this month, the Journal reported that its investor roadshow will now begin "mid-October at the earliest", with some investors, including SoftBank, asking WeWork to wait until 2020.

WeWork struggled to justify its unbelievably over $ 47 billion, largely based on its claim to being a technology company, although it largely completes long-term leases with short-term tenants and may still have $ 47.2 billion. $ Pending I can not pay it back when a recession breaks out, and I've used the Wi-Fi password "P @ ssw0rd" on most sites. Over the last few years, WeWork has lost over $ 3 billion and, according to the Journal, executives and underwriters have "resigned" to a valuation of "a little closer to $ 15 to $ 20 billion or less." [19455925]

According to Reuters, the decision to postpone the IPO also indicates that the Investors dissatisfied with recent cleanup efforts are critics of CEO and co-founder Adam Neumann, who has worked on small details, such as charging his own company $ 5.9 million for the use of the We brand and the Payout of shares worth more than $ 700 million. Changes that Neumann was to introduce on September 13 did not appear to have the intended effect:

We had announced that we would make the changes "in response to market feedback". The superior voting rights of Neumann will be reduced from 20 to 10 votes per share, but it retains a majority stake in the company.

Neumann will also give the company the profit he makes from real estate transactions with We. He will also limit his ability to sell shares in the second and third years after the IPO to no more than 10% of his shares.

(Neumann has allegedly once suggested that his company should have the highest rating possible so he can help resolve the refugee crisis.)

According to Reuters, We Company is expected to have an IPO rating of 10-12 this past week Less than the $ 12.8 billion in equity it has raised since 2010, and poor enough to kick-start the venture capital industry. We are committed to securing $ 6 billion in credit from banks in August, which will require us to raise at least $ 3 billion by the end of the year. Reuters wrote that even with the inclusion of a SoftBank offering to purchase $ 750 million to $ 1 billion in stock, We Company concluded that it would receive just over $ 2 billion. This could lead to the company needing alternative funding similar to a listing ship feverishly releasing lifeboat Craigslist ads.

"The We Company is looking forward to the upcoming IPO, which we expect to close at the end of the year," a We Company spokesman told Reuters in a statement. "We want to thank all our employees, members and partners for their continued commitment."

Sounds like everything is going well there.


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