WeWork to become latest struggling tech company to go public

Coworking company WeWork has announced its plans to go public despite losing $1.9 billion last year, joining a parade of unprofitable tech firms that have raised billions in stock sales this year.

WeWork owner The We Company on Wednesday filed with regulators for an initial public offering and published detailed financial statements for the first time, showing that it lost almost $700 million in the first half of 2019 while doubling revenue. 

It follows the recent public offerings of Uber, which lost $1.8 billion in 2018, and Lyft which lost $911 million.

We Company's IPO filing provides the most comprehensive financial picture yet of the company, co-founded in 2010 by its chief executive, Adam Neumann and his wife Rebekah Paltrow Neumann, the cousin of actress Gwyneth Paltrow.  

WeWork CEO Adam Neumann will control the majority voting rights of the company's capital stock following the IPO

WeWork CEO Adam Neumann will control the majority voting rights of the company's capital stock following the IPO

WeWork Co-Founder and CEO Adam Neumann and Rebekah Paltrow Neumann attend the 2018 Time 100 Gala at Jazz at Lincoln Center on April 24, 2018 in New York City

WeWork Co-Founder and CEO Adam Neumann and Rebekah Paltrow Neumann attend the 2018 Time 100 Gala at Jazz at Lincoln Center on April 24, 2018 in New York City

Following the IPO, Adam Neumann, 40, will control the majority of the total voting power of the company's capital stock - though if he fails to meet his pledge to donate $1 billion to charity within ten years of the IPO, the special voting rights of much of his stock will be cut in half, according to the filing. 

Neumann's first charitable contribution will toward the conservation of over 20 million acres of tropical forest, the filing states.

Neumann has not sold any shares of the company since October 2017 and does not plan to not sell shares in the IPO, We Company said in its filing. 

The documents state that Neumann declined to take a salary in 2018 - though note that he has a $500 million line of credit with affiliates of the IPO underwriters, of which $380 million was outstanding at the end of July. 

Through WeWork, Neumann's niche-interest investments also include a wave-pool startup and a superfood startup, which sells things like 'performance mushrooms,' powdered coconut water infused with beets and turmeric, and highly caffeinated coffee. 

WeWork, whose current investors include Japan's SoftBank Group Corp, did not disclose how much it is looking to raise in the IPO and what valuation it will aim for. 

Wave pools and 'performance mushrooms': the strange passions of WeWork CEO Adam Neumann 

Israeli-born Adam Neumann, 40, co-founded WeWork in 2010 with his wife Rebekah Paltrow Neumann, who is the cousin of actress Gwyneth Paltrow.

The couple met after Neumann moved to New York City to study business at Baruch College - though he dropped out just four credits shy of graduating.

Since marrying in 2009, the couple have had five children together.

Adam Neumann and Rebekah Paltrow attend the AnOther Magazine and Hudson Jeans Dinner at The Jane Hotel on September 14, 2009 in New York

Adam Neumann and Rebekah Paltrow attend the AnOther Magazine and Hudson Jeans Dinner at The Jane Hotel on September 14, 2009 in New York

Liz McClean, Rebekah Paltrow, Irina Lazareanu and Adam Neumann attend WeWork's launch party at Milk Studios on June 10, 2010 in New York City

Liz McClean, Rebekah Paltrow, Irina Lazareanu and Adam Neumann attend WeWork's launch party at Milk Studios on June 10, 2010 in New York City

Following WeWork's IPO, Adam Neumann will control the majority of the total voting power of the company's capital stock - though if he fails to meet his pledge to donate $1 billion to charity within ten years of the IPO, the special voting rights of much of his stock will be cut in half, according to the filing. 

Neumann's first charitable contribution will toward the conservation of over 20 million acres of tropical forest, the filing states.

Under Neumann's leadership, WeWork has made several environmental commitments, including to banning meat and plastic straws. 

Neumann says he is going to save this tropical rainforest as part of $1 billion in charitable donation over the next decade

Neumann says he is going to save this tropical rainforest as part of $1 billion in charitable donation over the next decade

Neumann says he is going to save this tropical rainforest as part of $1

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