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IPO Edge’s Jannarone: WeWork Looks a Lot Like Lyft Underneath the Hood – Cheddar TV

John Jannarone

WeWork parent The We Company shares some unflattering financial characteristics with Lyft that were revealed in its prospectus this week and could damp appetite for the IPO. That’s according to IPO Edge Editor-in-Chief John Jannarone, who spoke to Cheddar TV about the workspace company’s deepening losses and poor corporate governance. After reviewing the filing with Sentieo, Jannarone noticed that there were 68 mentions of “related party” in the S-1 filing, including a dealing with lead left underwriter J.P. Morgan. Last quarter, the company’s Ebitda margin widened to a negative 36% versus negative 31% a year earlier. Like Lyft, it appears the road to profitability for WeWork will be long and bumpy. The good news: CEO Adam Neumann isn’t selling any shares in the IPO (partly because he has already unloaded hundreds of millions in stock ahead of the company’s debut).



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