WeWork to slash its IPO valuation below $25 billion due to weak demand
Category: #headlines  By Saipriya Iyer  Date: 2019-09-06
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WeWork to slash its IPO valuation below $25 billion due to weak demand
  • WeWork lends workspaces on rent to businesses and start-ups and was founded by CEO Adam Neumann in 2010.
     
  • WeWork last raised capital at a valuation of $47 billion in the private market. Even with a $25 billion valuation, appetite for investment is currently limited.

WeWork, an American real estate company, dramatically reduced its IPO valuation below $25 billion. According to verified sources, the company would not go public in the upcoming week.

Reports cite, even after WeWork slashed its valuation to $25 billion, there is still no demand for investment. WeWork last raised capital at a valuation of $47 billion in the private market. Earlier valuation of WeWork came after SoftBank, a major backer of the company, invested $5 billion in terms of primary development capital as well as an additional secondary funding of $1 billion.

WeWork lends workspaces on rent to businesses and start-ups and was founded by CEO Adam Neumann in 2010. According to the company’s website, WeWork is aimed at increasing the world’s collective consciousness by growing and unleashing superpowers of each human.

Sam Zell, who managed to make $6 billion from real estate business, slammed WeWork, stating he had the privilege to invest in a company similar to WeWork. Zell added that such kind of company had started in 1956.

WeWork has been in a net loss of over $900 million in the first six months of the year on an income of $1.54 billion. WeWork rebranded itself as We Co. and has a total of 528 locations and aims to open new 169 locations and stated that 50% of its memberships are overseas based.

In July, We Co. agreed to pay off $5.9 million in stock options to Adam Neumann for the “We” trademark, which was earlier a We Holdings property.

 

Source credit: https://www.cnbc.com/2019/09/05/wework-is-dramatically-slashing-its-ipo-valuation-because-of-weak-demand.html

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About Author

Saipriya Iyer

Saipriya Iyer    

Saipriya Iyer currently works as a content developer for GroundAlerts. A computer engineer by profession, she ventured into the field of writing for the love of playing with words. Having had previous experience of 3 years under her belt, she has dabbled with website ...

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