We, the parent company of WeWork's short-term real estate management and development company, and other We-affiliated subsidiaries, announces plans for an initial public offering.
The company's public offering plans were hampered by questions about its corporate governance and the ultimate value of a company that private investors once thought was worth nearly $ 50 billion.
Public investors take advantage of this high valuation and dubious management practices of the company under CEO and co-founder, Adam Neumann, according to The Wall Street Journal, which first reported the news that The We Company would suspend supply your.
Over the past few weeks, The We Company has made several moves to reduce investor concerns. The company has developed some particularly outrageous deals with Neumann and added new directors. He also moved to limit Neumann's power in the company.
Last week, the company amended its prospectus to include the appointment of an independent managing director. In addition, it reduced the strength of Class B and Class C shares so that Neumann would not have 20 times the voting power of other shareholders and remove Neumann's wife from inheritance planning at the company.
Even these steps were not enough to comfort Wall Street investors, obviously. Even attempts to reduce the company's valuation to less than $ 1
Now that we, the company, are likely to pull off their public offering … and with Uber and Lyft lower in their first year as public companies, perhaps venture capital firms will rethink the high valuations that would give to their portfolio companies. It may be time to learn the lesson that greed may not actually be good.
We sought comment from The We Company for comment and will update with their response.
This story is unfolding.