With just weeks to go before WeWork’s planned IPO, the company was wrestling with the SEC
By Jean Eaglesham and Eliot Brown Nov. 10, 2019 5:30 am ET Just weeks before WeWork expected its stock to begin trading publicly, the startup was still wrangling with the Securities and Exchange Commission over a controversial key financial metric and a litany of other concerns about its planned multibillion-dollar IPO.
But as the IPO loomed, the SEC zeroed in on how WeWork framed its heavy losses, particularly through a bespoke profitability metric called “contribution margin,” a version of which had formerly been known as “community-adjusted Ebitda.” The agency had first ordered WeWork to remove the measure, before the company offered to substantially change it.
The SEC sent Mr. Neumann a nine-page letter on Aug. 30, telling WeWork to remove mentions of contribution margin. “As currently calculated and presented, we believe that your [contribution margin] measure could be misleading,” the letter said. “Please remove disclosure of this measure throughout your registration statement.”
WeWork’s resistance to removing the metric was directed by Mr. Neumann, people familiar with the discussions said. Mr. Neumann had previously boasted about the metric to reporters and investors, to show how the company’s core business was profitable.
Brasil Últimas Notícias, Brasil Manchetes
Similar News:Você também pode ler notícias semelhantes a esta que coletamos de outras fontes de notícias.
WSJ News Exclusive | Giuliani Associates Urged Ukraine’s Prior President to Open Biden, Election ProbesMonths before President Trump pressed Ukraine’s newly installed president to investigate Joe Biden’s son and alleged 2016 U.S. election interference, two associates of Rudy Giuliani urged Ukraine’s prior president to announce similar probes in exchange for a state visit to Washington.
Consulte Mais informação »
WeWork presentation has numbers critics say should have been in IPO - Business InsiderThe presentation also highlighted a break with cofounder Adam Neumann, with new executives planning to focus on large companies as customers.
Consulte Mais informação »
WeWork says it will divest all 'non-core' businessesWeWork on Friday announced a '90-day game plan' that includes sweeping changes to its business.
Consulte Mais informação »
WeWork, ex-CEO Neumann, Softbank sued over botched IPO, plummeting valueWeWork officials, including co-founder and former Chief Executive Adam Neumann, ...
Consulte Mais informação »
As WeWork Grew, Wall Street Lent It Money and CredibilityBanks jockeying for a role in WeWork’s public debut wooed founder Adam Neumann with sky-high valuations that would make him a billionaire many times over. Their loans to the company told a different story.
Consulte Mais informação »