The real estate startup that has enjoyed enviable growth in less than a decade could be worth much less than its January valuation of $47 billion.
Concerns around corporate governance and the nine-year-old firm’s business model have been previously raised, including founder and CEO Adam Neumann borrowing millions of dollars from the firm at a low interest rate, to buy property for WeWorkOther concerns lie in the firm’s multiple-class share structure, which allows founders to retain more control of the company. It leaves shareholders “powerless to deal with any kind of mismanagement,” Charles Elson of the University of Delaware, told the.
The firm also acknowledged in its filing last month that its growth “may not be sustainable.” Despite rapid expansion, We Co has experienced losses just as dramatic, draining $1.9 billion last year compared with $1.8 billion in revenue.
However mounting operating expenses, changes in the way that the firm measures its financial health and negative cash flow have thrown its long-term sustainability into
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