Lead financial advisors JPMorgan Chase & Co. and Goldman Sachs Group Inc. have concerns, leading to a push to make the public sale more palatable.
WeWork is considering major changes to governance to assuage investor concerns ahead of an initial public offering this month that has given pause even to some of its own bankers, according to people with knowledge of the situation.
Any decision ultimately rests with the venture’s co-founder and chief executive, Adam Neumann, who maintains voting control through a three-class share structure and has been an adamant proponent of the IPO, the people said. It’s unclear what changes WeWork may make to its governance to improve interest in its IPO. The company already has taken some steps, such as adding a woman to its board and having Neumann return $5.9 million of partnership interests initially granted to him as compensation for trademarks used in a rebranding. Yet its prospectus last month raised a variety of other concerns.
The company had planned to hold a formal roadshow to promote the offering as soon as this week, Bloomberglast week. But scrutiny of the firm’s finances and governance, as well as broader market turmoil, has taken a toll on investor enthusiasm. Early this year, Goldman Sachs privately suggested to people close to WeWork that its valuation could rise to $65 billion after going public. Advisors estimate it may achieve less than a third of that under current conditions.
Canada Latest News, Canada Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
WeWork bonds tumble to their lowest since IPO filing as uncertainty rattles investor nervesSoftBank, WeWork's largest outside shareholder, has urged the company to postpone its embattled IPO process.
Read more »
WeWork IPO valuation may dip below $20 billion in fresh blow to leading investor SoftBankWeWork owner The We Company is considering slashing the valuation of its planned...
Read more »
Cash incinerator WeWork could stall without an IPOBacker SoftBank wants the company to scrap a cut-price listing, the FT says. Yet the office sublessor may burn $15 bln by 2023, even if cash outflows reverse to match profitable peer IWG, a Breakingviews calculator suggests. Without IPO proceeds, WeWork may not last that long.
Read more »
WeWork is worth 70% below where it last raised money, NYU's 'dean of valuation' saysWeWork is really worth $14 billion, 70% below where it last raised money, NYU's 'dean of valuation' says.
Read more »
WeWork’s Latest Threat: Old-School Landlords Trying to Copy WeWorkOwners strike back as their big corporate tenants are targeted by WeWork and other purveyors of flexible leases and millennial-friendly workspace. ‘The biggest disruption to real estate since the invention of the elevator’
Read more »
Private wealth execs at JPMorgan and UBS told us they're lending more against private shares. WeWork CEO Adam Neumann has borrowed from both.Banks are building out lending to ultra-rich individuals, some of whom include Silicon Valley execs with a lot of wealth tied up in private shares.
Read more »