WeWork is pressing ahead with plans for a public listing, announcing a series of governance changes aimed at shoring up a sagging valuation.
WeWork is pressing ahead with plans for a public listing, announcing a series of governance changes aimed at shoring up a sagging valuation and assuaging critics who say it gave too much power to a polarizing co-founder.
Questions remain about how investors will value the fast-growing, money-losing office-leasing business that’s backed by SoftBank. Both of the company’s lead financial advisers — JPMorgan Chase & Co. and Goldman Sachs Group Inc. — have previously voiced concerns about proceeding with an IPO at a valuation around $15 billion, people briefed on the discussions have said.
The new filing revealed that Neumann will return any profits he receives from the real estate transactions he has entered into with the company, and that any CEO who succeeds him will be selected by the board of directors.The board will have the ability to remove the CEO, and the updated prospectus has taken out a clause that previously said Neumann’s wife, Rebekah, who’s listed as a founder and chief brand and impact officer of WeWork, will have a role in choosing any new chief.
“A key component of WeWork’s model is the ability to restrain growth in the event of a downturn and these governance changes increase the likelihood that an independent board will have the power to enforce such a decision,” Kevin McNeil, a director at Fitch, said in an emailed statement. WeWork has been driving ahead with its desire for the IPO, in part to gain access to much needed capital. The company needs to raise at least $3 billion through an IPO to tap into an additional $6-billion credit line that bankers have been setting up in recent weeks. The facilityThe original IPO plan included three classes of common stock, with holders of Class A shares getting one vote per share, while Class B and Class C owners got 20 votes for each.
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 considers governance changes to save IPOLead financial advisors JPMorgan Chase & Co. and Goldman Sachs Group Inc. have concerns, leading to a push to make the public sale more palatable.
Read more »
WeWork considering curbing Neumann's voting power to save IPO: FTWeWork owner The We Company's executives, investors and advisers are discus...
Read more »
WeWork considering curbing Neumann's voting power to save IPO: sourceWeWork owner The We Company's executives, investors and advisers are discus...
Read more »
WeWork curbs CEO's voting power in bid to boost IPO prospectsWeWork owner The We Company said on Friday it has curbed the voting power of fou...
Read more »
'Stop the WeWork deal' — Cramer says the embattled IPO could wreck the stock market rallyWeWork should pull its IPO because the negative sentiment around slashing its valuation could be contagious in the overall stock market, says CNBC's Jim Cramer.
Read more »