The company of shared workspaces WeWork announced on Friday a reorganization of its management, removing power to the founder and CEO, Adam Neumann, ahead of its next IPO, which will take place in the Nasdaq market.
WeWork's landing on Wall Street is shrouded in uncertainty over investors' doubts and has forced the company to study a large reduction in the initial valuation it will seek.
That valuation, which initially stood at around 47,000 million dollars could fall to 20,000 million or even below, according to various media reports.
This Friday, in a brief to the stock market regulators, the WeWork matrix revealed changes in the business structure, among other things with a cut in the power of Neumann's special shares, which pass from 20 to 10 votes per title.
In addition, if the founder dies or becomes incapacitated, the shares will lose those privileges and will only have one vote, and his family would not participate in the election of a successor, something that was previously provided.
WeWork also announced that it will appoint an independent director before the end of the year.
The movement seeks to reassure investors, who have expressed concern about Neumann's management and the company's business model.
According to documents delivered to stock market regulators, the company had net losses of 1.9 billion dollars in 2018, something that according to WeWork is due to the fact that at the moment they are focused on growing.
In the first half of fiscal year 2019, the company entered 1,540 million dollars and recorded net losses worth 900 million.
The firm, which will be listed under the name "The We Company" or "We", has more than half a million subscribers in 528 spaces that it rents in 124 cities in 37 countries of the world, including Madrid, Barcelona, Buenos Aires, Rio de Janeiro, Sao Paulo, Santiago, Chile, Bogotá, Medellin, Lima, Mexico City and San José.
Unlike the traditional rental business, WeWork focuses on small businesses, so-called "startups", self-employed workers, and even people who need to have space sporadically to hold meetings or conduct workshops.
The company takes care of all the expenses associated with the maintenance of the space, such as electricity, water, internet service, printers, and even pens, paper and other office supplies with the aim that those who rent through WeWork can focus exclusively on his work.
The company is also advertised as a meeting place for professionals that allows them to expand their network of contacts; organizes sports and leisure activities; and enjoys great popularity among the technology industry, whose needs tend to fit well with what WeWork offers.
Its IPO, scheduled for this month, is one of the most anticipated this year.
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