WeWork just filed for its IPO, and revealed a lengthy list of risk factors that investors should be aware of
- WeWork filed for its initial public offering on Wednesday morning, which revealed and confirmed a number of different things about the office coworking company.
- In particular, the "Risk Factors" section of the document highlights many of the issues that critics of WeWork have leveled.
- Everything from conflicts of interest involving CEO Adam Neumann to the unpredictable nature of the real estate market is highlighted. We break down the full list below.
- Read all of BI's WeWork coverage here.
- Visit Business Insider's homepage for more stories.
The office co-working company valued at $47 billion, WeWork, filed for its initial public offering on Wednesday morning.In order to begin that process, WeWork had to publicly disclose a trove of information about itself that was previously rumored or outright unknown. The first such revelation came up front: A staggering net loss of $1.6 billion in 2018 on revenue of $1.8 billion. Advertisement
But that's far from all the filing document has to offer - a section labeled "Risk Factors" details the major issues WeWork believes it could face. We break down the most important of those potential issues below:
1. WeWork has grown rapidly, and that growth may not be sustainable.
2. The world is unpredictable, as is business.Advertisement
3. WeWork has a long history of losses.
4. The real estate market is a mess.Advertisement
5. There are some major risks specifically tied to CEO Adam Neumann.
6. WeWork prioritizes its mission over short-term profit.Advertisement
7. And, of course, there's always the risk of a massive data leak.
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