WeWork's parent company, We Co., has chosen to list its shares on Nasdaq and plans sweeping changes in its governance as the shared-workspace provider moves closer to its highly scrutinized initial public offering.
However, skepticism over the company's governance as well as its economic model and balance sheet have plagued its IPO since it was first announced last month, leading to a valuation of what is expected to be around $20 billion -- less than half the $47 billion expected when its IPO plans were first announced.
A number of issues have clouded the company's path toward going public, including large losses, management's larger-than-normal share of votes and large insider share sales in the private market by CEO Adam Neumann.
Most troubling, however, have been concerns that the company's $17 billion in global commercial lease obligations will be difficult to shoulder if the economy sours and demand for shared workspace falls.
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