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.
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.
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