Whatever hell WeWork – a technology company or just a cult real estate venture that happens to offer crane knuckles and desperately wants to be considered a technology company – may not go public until soon.
WeWork's parent company, We Company, is expected to delay its initial public offering "amid investor concerns about how much the company actually costs and questions remain about its corporate governance, the Wall Street Journal reported on Monday. While the space company was expecting to go through an IPO this month, the magazine reported that the investor investment show would now start "as early as mid-October," with some investors like SoftBank pushing WeWork to wait until 2020.
is struggling to justify its fun-filled $ 47 billion, which relied heavily on its claim to be a technology company, despite the fact that it mostly transfers long-term leases to short-term tenants, has $ 47.2 billion in outstanding debt is unable to pay back if a recession occurs and has reportedly used the P @ ssw0rd wi-fi password in most places. Over the past few years, WeWork has lost over $ 3 billion and, according to the magazine, executives and underwriters have "come to terms" with an estimate of "anything closer to between $ 15 billion and $ 20 billion or less."
According to Reuters, the decision to delay the IPO also indicates that investors are not satisfied with recent mobilization efforts . CEO and co-founder Adam Neumann's critics, who are scrutinized for small details, charging his own company $ 5.9 million for using the We brand and extracting more than $ 700 million in shares. The changes intended to introduce Neumann on September 13 clearly did not achieve the intended effect:
We Company said it was making the changes "in response to market feedback". It says Neumann's outstanding voting shares will be reduced to 10 votes per share by 20, though it will retain majority control of the company.
Neumann will also give the Company any profit it receives from the real estate transactions it has entered into with the Company. It will also limit its ability to sell shares in the second and third years after the IPO to no more than 10% of its shares.
(Neumann, it should be noted, once suggested that his company should have the highest score possible to be able to help resolve the refugee crisis.)
According to Reuters last week by We Companies have been rumored to be considering an IPO estimate of $ 10-12 billion, less than $ 12.8 billion in equity accumulated since 2010, and small enough to serve as a slam dunk for the venture capital industry . We are committed to a $ 6 billion line of credit it provided to banks in August, which requires it to post and raise at least $ 3 billion by the end of the year. Reuters writes that even factoring in a SoftBank offer to buy shares worth between $ 750 million and $ 1 billion, We Company concluded it would raise just over $ 2 billion. This may leave the company in need of alternative financing, which is a bit like a listing ship that has been crazily placing Craigslist advertisements on lifeboats.
"The company We look forward to our upcoming IPO, which we expect to be completed by the end of the year," said a company spokesman for We Reuters. "We want to thank all our employees, members and partners for their continued commitment. "
Sounds like everything's going great there.