Neumann's epic personality played a "huge role" in the listing's failure, the Financial Times reported, mentioning somebody who worked carefully with him.
Since the WeWork parent company filed its S-1 with the U.S. Securities and Exchange Commission last month, investors have raised concerns about issues ranging from the amount of control Neumann has over the company to his leadership style to his efforts to trademark the term "We".
WeWork limited Neumann's voting powers by slashing his high-vote stock from 20 votes per share to 10. In addition, WeWork also cut out Neumann's wife, Rebekah Neumann, from the search for his successor in case of any situation.
The information comes on the heels of different excessive profile WeWork staff stepping down this summer season, together with worldwide head of enterprise and monetary operations Ted Stedem, together with chief model officer Julie Rice.
WeWork's cofounder and CEO, Adam Neumann, informed staff members he was "humbled" by the collapse of the business's initial public offering this week.
The restructuring of the Company comes shortly after Wall Street speculations that WeWork's valuation could drop as low as Dollars 15 Billion compared to its previous private valuation of USD 47 Billion a year ago.
Neumann and 2 other WeWork executives vowed to employees that the IPO would go through later on this year, however the company might be forced to delay its public launching till next year, people informed on the matter informed the Financial Times. SoftBank's investment fund, Vision Fund has collectively invested more than United States dollars 10 Billion in We Company and are reportedly considering weighing additional investment to support the IPO.
In an announcement launched on Monday, a WeWork spokesperson stated, "The We Company is looking forward to our upcoming IPO, which we expect to be completed by the end of the year".