WeWork’s CEO is sending more signals that may scare off potential IPO investors. The Wall Street Journal reported Thursday that Adam Neumann has sold or borrowed against at least $700 million of his WeWork stock.
Like most things WeWork does, the amount Neumann raised is unusually large for a pre-IPO tech executive. But the practice of top executives selling stock before an IPO is becoming more common. It puts Neumann in tough company, following in the footsteps the chief executives of then-privately held Groupon and Zynga, whose stocks struggled on the public markets. That’s a negative signal for potential public investors, who will already be scrutinizing the company’s sky-high valuation.