WeWork reportedly might slash its valuation below $20 billion, or even postpone its IPO
- WeWork could slash the valuation it seeks as a public company to below $20 billion, or even postpone its IPO, according to the Wall Street Journal.
- The proposed cut comes days after the Journal reported 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.
- Here's a roundup of BI's WeWork coverage.
WeWork could slash the valuation it seeks as a public company to below $20 billion, or even postpone its initial public offering, according to the Wall Street Journal, 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 the Journal reported 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.
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, its IPO filing shows.
Investors also have concerns about CEO Adam Neumann, who controls the lion's share of WeWork's voting shares, raised $700 million by selling and borrowing against his company stock, and even charged the company nearly $6 million for the "We" trademark.
- Govt approves PLI scheme for making drones with outlay of Rs 120 cr, comes out with norms
- Apple transportation through drones to become reality in tribal Kinnaur district of HP
- Researchers develop device that uses sound waves to separate blood-based nanoparticles
- 5 Bihar villages to be developed into human-carnivore coexistence zone
- Delhi's air quality will likely improve from Sunday evening, says IMD
- Dharmaj Crop IPO
- Reliance Jio
- Digital Nomad Visa
- Whatsapp tips
- Air India crew guidelines
- Mukesh Ambani
- Larget Employers
- Highest Revenue companies
- New Cars in December 2022
- Best Companies for Work
- India's Richest People
- Maruti Suzuki
- Top Valuable unlisted Company
- Tata Tiago cng vs Alto k10 cng
- Top 10 Colleges in India
- Top 10 Airlines in World