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The parent structure of the We Co startup provided incorrect information about the number and cost of work places that WeWork equipped in January-June 2016. Besides, it hid details about the startup management structure, in particular the fact that its CEO Adam Neumann was a member of the compensation committee of the board of directors.
"In general, their approach gives the impression of being careless, since many important figures do not correlate with each other; in the worst case it may be a deliberate distortion of facts, but I prefer to think that we are talking simply about negligence," commented professor Nori Gerardo of the Harvard Business School. When the startup makes a new attempt to conduct an IPO, regulators will study it under a microscope, said Erik Gerding, professor of law at Colorado State University.
WeWork applied for an IPO on August 14, and recalled the application a month later. It was reported that institutional investors showed little interest in the placement, and some of them doubted the adequacy of evaluating the value of the company, the existence of a working business model for it, and were afraid of its CEO having excessive influence on it.
source: wsj.com
"In general, their approach gives the impression of being careless, since many important figures do not correlate with each other; in the worst case it may be a deliberate distortion of facts, but I prefer to think that we are talking simply about negligence," commented professor Nori Gerardo of the Harvard Business School. When the startup makes a new attempt to conduct an IPO, regulators will study it under a microscope, said Erik Gerding, professor of law at Colorado State University.
WeWork applied for an IPO on August 14, and recalled the application a month later. It was reported that institutional investors showed little interest in the placement, and some of them doubted the adequacy of evaluating the value of the company, the existence of a working business model for it, and were afraid of its CEO having excessive influence on it.
source: wsj.com
