- 13th September 2019
- Posted by: Muff lbr
- Category: Business plans
- WeWork’s valuation may fall below $15 billion, CNBC’s David Faber reported Friday. Its private valuation was as high as $47 billion.
- The move comes as WeWork’s parent company announced sweeping corporate governance changes in an amended S-1 filing made public Friday.
- The We Co. is changing its high-vote stock from 20 votes per share to 10 votes per share, curtailing WeWork CEO Adam Neumann’s voting power.
The valuation targets for WeWork continue to drop and the company’s IPO valuation could fall below $15 billion, perhaps around $10 billion to $12 billion, sources told CNBC’s David Faber. Its private valuation was as high as $47 billion.
The move comes as WeWork’s parent company announced Friday that it plans to make a number of changes to its corporate governance structure in advance of its much-anticipated IPO and amid growing investor concerns.
In an amended S-1 filing, The We Co. said it’s changing its high-vote stock from 20 votes per share to 10 votes per share, curtailing WeWork CEO Adam Neumann’s voting power. Prior to the move, Neumann controlled the majority of voting rights through the company’s Class B and Class C shares, with both classes carrying 20 votes per share compared with Class A shares, which have one vote per share. The filing also states that WeWork will list its shares on the Nasdaq under the ticker “WE.”
The company also eliminated a key provision that would have allowed Neumann’s wife, Rebekah, to lead the search for his successor should he ever become permanently disabled or deceased. Instead, WeWork’s board would pick a successor. The filing states that “no members of Adam’s family will sit on our board.”