WeWork may cut its IPO valuation by billions

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WeWork may cut its IPO valuation by billions
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WeWork, one of the most high-profile tech companies that has filed to go public this year, is now weighing whether to cut its targeted IPO valuation drastically, according to multiple news outlets

WeWork's parent company is considering seeking a valuation in the $20 billion range for its planned IPO, according to the Wall Street Journal, which was first to report the news Thursday. The company was previously valued at as much as $47 billion on the private market, according to CB Insights, a research firm that tracks venture capital. The We Company declined to comment.

Adam Neumann, the company's CEO and cofounder, is set to wield considerable control over WeWork, thanks to its plans to create multiple classes of stock that give him more voting power. And the IPO prospectus showed Neumann has made millions of dollars by leasing properties back to the company, raising concerns about conflicts of interest. In the face of criticism, The We Company said in a filing this week that Neumann has repaid the company $5.

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