WeWork….more like WeWTF

WeWork To Adjust Corporate Governance, Valuation Ahead Of IPO

https://www.businessinsider.com/nyu-professor-calls-wework-wewtf-and-slams-bankers-2019-8

We’s plans for a $20 billion public offering have been hampered by questions about its corporate governance and the ultimate value of a company that private investors, through multiple rounds of funding, once thought was worth nearly $50 billion.

But under the scrutinizing spotlight of the IPO process, investors have been publicly and privately balking at that sky-high valuation and the company’s questionable governance practices under chief executive officer and co-founder, Adam Neumann, according to The Wall Street Journal, which first reported the news that The We Company would put its offering on hold

Over the past few weeks, The We Company — which has expanded to include a boutique hotel operation, members-only financial services and a charter yacht service (!) — has made several moves to allay investors’ concerns. The company unwound some particularly egregious transactions with Neumann and added new directors. It also moved to limit Neumann’s power at the company.

WHY ITS HOT:

Classic example of fake tech/digital company that was overvalued by a few investors in the private market. Other “tech” unicorns will be going public and will see what they are really worth in the public market.

Co-Working is not going anywhere if you believe the future of work is freelance and flexible office space for enterprise companies becomes a trend to control expenses and long term leases. The problem is you cant put a software and tech multiple on a business that is in real-estate. See plant based meat IPOs, etc.