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- WeWork could slash the valuation it seeks as a public company to below $20 billion, or even postpone its IPO, $4.
- The proposed cut comes days after $4 the shared office-space company was considering an IPO at about $20 billion - already less than half of the $47 billion private valuation it secured earlier this year.
- WeWork has faced growing skepticism about its path to profitability and CEO Adam Neumann.
- $4.
WeWork could slash the valuation it seeks as a public company to below $20 billion, or even postpone its initial public offering, $4, citing unnamed people familiar with the matter.
The shared office-space provider plans to embark on an investor roadshow this week to drum up interest in its shares, despite some investors pushing for a delay to its IPO, the Journal said. WeWork's underwriters intend to meet this week and speak with investors to determine what changes may be necessary to ensure a successful public debut, the newspaper reported.
The proposed cut in valuation comes days after $4 WeWork was considering an IPO at the $20 billion mark - already less than half of the $47 billion private valuation it secured earlier this year.
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The group planned to raise between $3 billion and $4 billion by going public, and secure another $6 billion in debt contingent on its IPO raising at least $3 billion, the Journal said. Without those funds, it could struggle to maintain its rapid growth - perhaps its biggest draw for investors.
WeWork signs long-term leases for properties, renovates and divides them into smaller units, then rents them out to clients under short-term contracts.
The group has faced growing skepticism about its path to profitability: its revenue doubled to over $1.5 billion in the first half of 2019, but its losses ballooned by 25% to $905 million, $4.
Investors also have concerns about CEO Adam Neumann, who $4 of WeWork's voting shares, $4 by selling and borrowing against his company stock, and even $4 for the "We" trademark.