WeWork offers convincing case to avoid its IPO

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WeWork offers convincing case to avoid its IPO
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WeWork’s convoluted ownership structure, conflicts of interest and massive cash burn have provided one of the most convincing cases for avoiding an IPO, writes rob_cyran.

The We Company on Aug. 14 revealed its prospectus for its initial public offering. The shared-office provider has not yet decided how much stock to sell, or at what price. The company had revenue of $1.5 billion in the first six months of the year and an operating loss of $1.4 billion. That compares to revenue of $764 million, and an operating loss of $678 million in the same period last year.The company will have three classes of stock.

The We Company owns an interest in the We Company Partnership, a subsidiary, along with certain members of management. Holders of partnership interests in the We Company Partnership receive class C shares.

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