WeWork parent We Co.’s decision to pull its IPO Monday is a sign its prospectus needs a complete overhaul, including a squeaky clean framework around corporate governance. In turn, future unicorns are likely to focus more closely on issues such as dual share class structures and board independence that drew criticism for WeWork. That’s according to John Jannarone, Editor-in-Chief of CorpGov, who spoke to Cheddar TV to discuss the fallout from the failed IPO. Jannarone pointed out that other companies with lopsided voting power such as Lyft, Inc. and Peloton Interactive, Inc. have managed to list, but it may not be so easy after the trouble at WeWork. There is also likely to be even more scrutiny over profitability, an issue that has hobbled Uber Technologies, Inc. since its listing earlier this year.
MORE analysis of WeWork’s disappearing cash flow here.
