Wework is reportedly likely to postpone its initial public offering (IPO) until next year after chief executive Adam Neumann stepped down yesterday.
Bloomberg reports that the office sharing company is likely to delay its float until 2020, but said nothing had yet been finalised.
Yesterday co-founder Neumann confirmed he was stepping down with immediate effect after the company’s botched IPO and his erratic behaviour spooked investors.
The company had planned to float this month, but delayed its plans in the face of cool investor sentiment.
Wework has promoted two of its current executives – Artie Minson and Sebastian Gunningham – to share the chief executive role while the company finds a permanent replacement.
Neumann said yesterday: “In recent weeks, the scrutiny directed toward me has become a significant distraction, and I have decided that it is in the best interest of the company to step down as chief executive.”
Neumann has also been criticised for his behaviour, with reports emerging last week he smoked cannabis on a private jet between the US and Israel, while company parties on his watch were reportedly raucous and tequila-fuelled.
In 2018, Morgan Stanley put the company’s valuation as high as $104bn (£83bn), and a private placement in January puts its value at $47bn.
The company’s postponed IPO would have valued the business at $15bn.
Major investors, including Japanese giant Softbank, had reportedly pushed for Neumann’s removal as chief executive in recent weeks.
Wework declined to comment.