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WeWork says will file to withdraw IPO (reuters.com)

645 points by pseudolus · 2574 days ago · 384 comments on HN

Article summary

WeWork has announced that it will file to withdraw its IPO. The decision comes after the company faced skepticism from public investors and scrutiny over its valuation and governance. The withdrawal of the IPO is expected to result in significant losses for SoftBank and other investors. WeWork's business model and financials have been questioned by many, leading to a reevaluation of its worth.

Main themes

  • WeWork IPO withdrawal
  • valuation skepticism
  • governance concerns
  • investor losses
  • tech company masquerade

What commenters say

  • The withdrawal of WeWork's IPO is a result of public investors expressing skepticism over the company's valuation and governance, which was not adequately addressed by private backers.
  • The WeWork debacle is an example of investors engaging in a form of gambling, desperate to find the next big tech success story, rather than making informed investment decisions.
  • The company's actions, including enriching the founder and his family, constitute a form of deception or fraud, albeit possibly not in a technical sense.
  • The distinction between deception and generous marketing is blurred in the case of WeWork's IPO, with some arguing that the company's valuation was artificially inflated.
  • The collapse of WeWork's IPO will lead to significant layoffs and a flood of talent into the job market, potentially affecting the reputations of those who worked at the company.
  • WeWork's attempt to masquerade as a tech company, rather than a real estate firm, was a key factor in its downfall, as it attempted to justify an inflated valuation.
  • The company's generous compensation packages for software engineers, who may not have had much to do, are seen as a symbol of its mismanagement and lack of focus on its core business.
  • The question of whether WeWork's actions constitute fraud will likely be determined in a court of law, with some arguing that the company's disclosures were sufficient to inform investors of the risks involved.