WeWork discloses material weakness and plans to restate financials, sending stock lower
Summary
Just over a month after debuting on the public market, WeWork has already hit a snag with investors. The provider of flexible office space said in a regulatory filing on Wednesday that it will restate financial results for 2020 and the first three quarters of 2021, because calculations were made using the wrong public share count. WeWork went public in October through a special purpose acquisition company called BowX Acquisition Corp., which is led by Sacramento Kings owner and former TIBCO Software CEO Vivek Ranadive. The announcement marks another setback for WeWork, which was rescued in 2019 by SoftBank after excessive losses and an overinflated valuation forced the company to scrap its initial IPO plans. Co-founder Adam Neumann was ousted as CEO, and the company scaled back its ambitions to focus just on office space.