WeWork Parent Weighs Slashing Its Valuation in Half

Re:WeWork Parent Weighs Slashing Its Valuation in Half by JumpCrisscross on Thursday September 05, 2019 @12:53PM (#20888546)

> They almost definitely have liquidation preferences on that 2B

Automatic conversion clauses typically force convertible pref to convert to common in the event of an IPO. This makes liquidation preferences generally irrelevant to public offerings.

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Re:WeWork Parent Weighs Slashing Its Valuation in Half by acchow on Thursday September 05, 2019 @05:14PM (#20890690)

You can define arbitrary preference rules. For example, the conversion doesn't have to be 1-to-1.

In the case of Square's IPO, Series E preferred had a provision giving them extra free common stock to make up the gap if it IPO'd below $18.55 (which it did).

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Re:WeWork Parent Weighs Slashing Its Valuation in Half by ChuckMcM on Thursday September 05, 2019 @06:14PM (#20891122)

You can, and I may be wrong here, but I seem to recall that one has to call out these sorts of options in the S-1. It is material to people investing in the IPO.

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