It looks like WeWork will be putting off going public for a little while longer..
Interesting timing - they seem to still have billions in cash in their balance sheet I don’t see why they needbyet another raise/infusion now.
Also interesting this is a direct investment, not from the vision fund - I’m not an expert on corporate structure but I think lots can be read into that - looks like they’re position share ownership for a potential IPO and to maximise return.
Is it just me or is that really bad?
Ethically it’s very bad. But the board cannot do much even if they wanted to because the CEO has majority voting rights. There’s a lot of startups with share structures like this.
Adam: “Hey WeWork, do you want to lease my building for a lot of money?”
[shuffles around so he’s facing the other way]
Adam: “Ooh yes please.”
[shakes hand with self]
Horrible ethically, but as @saf says there’s no effective governance. Facebook and others have similar structures.
Another excellent Polymatter video:
Complimentary Bloomberg coverage decent too:
WeWork appears to me to be one of the most overvalued companies in existence. I’ll be staying well away if/when they ever hit the public market.