WeWork's valuation has fallen from $47 billion last year to $2.9 billion
- WeWork's valuation has fallen to $2.9 billion, according to its controlling shareholder, SoftBank.
- The workspace company was valued privately at $47 billion last year.
- WeWork's valuation is due in part to the coronavirus pandemic, SoftBank said in its earnings report.
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WeWork's valuation has fallen to $2.9 billion, its controlling shareholder, SoftBank, said in an earnings report on Monday.
The decline from SoftBank's $7.3 billion valuation of the company in December is due in part to the coronavirus pandemic, SoftBank said.
WeWork CEO Sandeep Mathrani said last week that the company has paid rent at 80% of its locations for April and Pay, and that it has collected rent from 70% of its tenants. While WeWork has kept its offices open, most of WeWork's tenants are unable to make use of the space due to local restrictions on nonessential workers.
The company laid off around 200 employees last month, and is asking employees in more than 800 of its locations to reapply for their jobs under a reorganization effort.
The valuation is a sharp fall from WeWork's private valuation of $47 billion in 2019. Later that year, the company lowered its valuation to $10 billion as it delayed its initial public offering.
WeWork declined to comment on SoftBank's valuation.
SoftBank's Vision Fund, which has invested in WeWork, has suffered billions in losses. SoftBank CEO Masayoshi Son said in an earnings call on Monday that he regrets investing in WeWork. "It was foolish of me to invest in WeWork," Son said. "I was wrong."
Former WeWork CEO Adam Neumann, who had lofty plans for the company including WeLive communal living, sued SoftBank earlier this month claiming the bank reneged on its plan to buy $970 million of his shares in the company. SoftBank said it would "vigorously defend itself against these meritless claims."
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