The company, now operating as the “We Company” houses its co-working spaces, as well as its new ventures including WeLive and Rise by We. With this announcement, WeWork joins the ranks of a number of other notable startups that are entering the public market this year. Last year, WeWork reported losses of nearly $2 billion, a number nearly double from the year prior.
The difference between those companies and WeWork is the underlying fundamentals that support long-term viability in the former and not the latter. WeWork’s landlord/tenant relationship is muddied by the conflict of interest that exists because WeWork’s CEO and co-founder Adam Neumann owns a number of buildings that WeWork rents floors from to operate its co-working business.
If the CEO of WeWork is leasing a building on behalf of the company from himself, who is to say that it is a fair price? This could be considered self-dealing. This ripe IPO market includes a number of companies that, unlike WeWork, present more optimal investment opportunities. The company unveiled its plan for an IPO late in April.