WeWork could slash the valuation it seeks as a public company to below $20 billion, or even postpone its initial public offering, The Wall Street Journal reported on Sunday.Last week, The Journal reported that the shared-office-space company was considering an IPO at about $20 billion, 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 its CEO, Adam Neumann.Here's a roundup of Business Insider'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, The Wall Street Journal reported on Sunday, 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 would ensure a successful public debut, the newspaper reported.
Last week, The Journal reportedthat WeWork was considering an IPO at the $20 billion mark, less than half of the $47 billion private valuation it secured earlier this year.
WeWork planned to raise $3 billion to $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, then renovates and divides them into smaller units, which it rents to clients under short-term contracts.
The company 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 WeWork's CEO, Adam Neumann, who controls the lion's share of its voting shares, raised $700 millionby selling and borrowing against his company's stock, and even charged the company nearly $6 million for the "We" trademark.