WeWork’s parent is eyeing an IPO valuation that could fall below $20 billion as some investors push for a delay, people familiar with the matter say
By Maureen Farrell Sept. 8, 2019 5:05 pm ET WeWork’s parent is eyeing a valuation for its initial public offering that could fall below $20 billion as some existing investors push the workspace company to shelve the planned offering, people familiar with the matter said.
A valuation below $20 billion would be an even steeper drop from the $47 billion mark where We last raised private capital this year in the face of skepticism among potential public investors over the company’s governance, its business model and ability to turn a profit while continuing to grow. It would be particularly painful for investors who have given or committed over $10 billion to the company since it was founded in 2010.
Should We yank or postpone the IPO, it stands to miss out on nearly $10 billion needed to fund its ambitious but money-losing global-growth plans. The company was planning to raise $3 billion to $4 billion in the IPO and up to $6 billion in debt that is contingent on the IPO raising at least $3 billion.
The company is continuing to talk to its biggest investor, SoftBank Group Corp., about whether the Japanese technology giant would put in additional capital through the IPO by buying a significant portion of the shares on offer or invest a chunk of money that would allow We to delay its IPO until 2020.
Brasil Últimas Notícias, Brasil Manchetes
Similar News:Você também pode ler notícias semelhantes a esta que coletamos de outras fontes de notícias.
Exclusive: WeWork to press on with IPO launch despite valuation concerns - sourcesExclusive: WeWork will press on with its IPO launch, with an investor roadshow coming as early as next week, despite concerns over its valuation
Consulte Mais informação »
WeWork Considers Cutting Its Share Offering By Half, No Word Yet On Delaying Anticipated IPOThe real estate startup that has enjoyed enviable growth in less than a decade could be worth much less than its January valuation of $47 billion.
Consulte Mais informação »
WeWork IPO turns contentious at SoftBank’s Vision FundAs WeWork contemplates an IPO at a far lower valuation that previously expected, its biggest backer — SoftBank — is bracing for a potentially staggering loss.
Consulte Mais informação »
WeWork reportedly hired the parents of a high-ranking exec as real estate brokers, among other potential conflicts of interestWeWork has been involved in a large number of deals with CEO Adam Neumann and his family. But it also did deals with family members of other managers.
Consulte Mais informação »
Learning to read: What age is the 'right' age? - Today's ParentSome kids just “get” how to read, while others struggle for years. When should parents worry?
Consulte Mais informação »