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A comment on WeWork Needed a Bailout, But Adam Neumann Still Leaves a Billionaire. Parent comment

Re:WeWork Needed a Bailout, But Adam Neumann Still Leaves a ... by WisNorCan on Wednesday October 23, 2019 @01:39PM (#21336941)
The 409a valuation isn’t typically the same as the investor price early on. This accounts for lack of liquidity and preference.

However, as those differences start disappearing, e.g. when WeWork and Uber were about to IPO, the 409a converges with the investor price.

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Re:WeWork Needed a Bailout, But Adam Neumann Still Leaves a ... by mavelikara on Wednesday October 23, 2019 @06:00PM (#21339509)
But why?

By the price of common and investor class of shares converging, the implication is that the economic value of the preferences and other arrangements investors get is $0. That does not sound right to me.

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