WeWork’s valuation continues to drop from its original private valuation of $47 billion, with reports revealing it could dip down below $15 billion. This news comes after The We Company revealed several amendments to its highly scrutinized S-1 filing.
One of the amendments includes changing the company’s high-vote stock from 20 votes per share to 10 votes per share. Prior to this change, CEO Adam Neumann controlled the majority of voting rights.
Additionally, the company eliminated allowing Rebekah Neumann, Adam’s wife, to lead the search for his successor in the case that he should become permanently disabled or deceased. Now, the board would pick a successor.
Moreso, Neumann will return any profits he received from leasing out his own buildings to the company, as well as limiting himself to selling no more than 10% of his shareholders in the second and third years after the IPO.
The company’s valuation has nosedived tremendously as investor demand appears weak, but the IPO is still on track to happen. This is despite SoftBank, WeWork’s biggest shareholder and investor, urging the company to hold off going forward.