# I. Why WeWork's IPO failed
WeWork opened its first shared workspace in New York City in 2010, shortly after its founding. The company then expanded its operations to 425 locations in 100 cities across 27 countries within a decade, and was valued at USD 47 billion in 2019 after receiving a USD 6 billion investment from Softbank.
WeWork’s extraordinary growth, however, drew scrutiny over its corporate governance and culture. The scrutiny included reports on WeWork’s settlements with the Illinois and New York attorneys general over the company’s extensive use of non-compete agreements, as well as a former employee’s sexual harassment claim filed in the second half of 2018.
In early 2019, the Wall Street Journal reported that WeWork’s founder and then- CEO, Adam Neumann, had made millions of dollars by leasing his own properties to the company. In the months that followed, WeWork faced a growing number of legal complaints alleging workplace discrimination and retaliation against whistleblowing employees. In August of the same year, WeWork’s parent company We Co announced plans to go public on the Nasdaq Stock Exchange.
In September 2019, WeWork announced Neumann’s resignation and withdrew its IPO filing as concerns over potential conflicts of interest involving Neumann intensified and confidence in the company’s business model and financial positions faltered.
Following WeWork’s IPO failure and subsequent valuation drop from USD 47 billion to USD 2.9 billion, the company continued to struggle with legacy issues left by former leadership. In addition to a state attorney general investigation into selfdealing allegations against Adam Neumann, there was also a class-action lawsuit filed by the company’s minority shareholders alleging breach of fiduciary duty, and at least three additional legal actions over alleged workplace discrimination and sexual harassment. The company was also twice alleged to have violated the privacy of its customers in the US and elsewhere.
