2019-09-13 — cnbc.com
The valuation targets for WeWork continue to drop and the company's IPO valuation could fall below $15, 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... 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."
Neumann has decided to return any profits he receives from the real estate transactions he has entered into with the company, the filing states. He had faced criticism for leasing several properties in which he has an ownership stake back to WeWork and making millions in the process. Neumann will also limit himself to selling no more than 10% of his shareholdings in each of the second and third years after the WeWork IPO.
The startup unicorn free-for-all times are coming to a close...
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