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Softbank Wants WeWork To Postpone The Upcoming IPO

Softbank which is one of the main investors of WeWork is pushing them to hold off their public offering of the stocks as there are serious issues in the business as a whole and the corporate governance. WeWork’s main work is to own or lease several commercial spaces and giving it out to companies that require work spaces for short term needs. They are now planning to organize a road show in which they will announce and promote their public offering of shares. Representatives from the Softbank, which is the parent company of WeWork, have declined to give any comments on this.

WeWork has noticed a sudden shift of the tide as they have become a punch-line for investors from being one of the most valuable unicorn start-ups of America. After WeWork released a preliminary prospectus during the last month, it was found that the company has been incurring losses back to back and was burning through their cash reserves. The company had loads of internal conflicts among managers as well. WeWork lost over $690 million in the starting 6 months of 2019 this brought their total loss to a staggering $3 billion over the course of past 3 years. Now, the company doesn’t even reach1/3 of their estimated net worth of $65 billion which was presented by Goldman Sachs Group earlier this year.

WeWork is now looking at their credit lines which values at around $6 billion to raise at least $3 billion in initial public offerings according to their own prospectus.

According to an executive of the company, WeWork is already exploring a lot of different possibilities to get additional funding. One of the prominent ways would be their junk bonds and they are planning to rely on these bonds for funding the company for the future. The executive also said that they are looking into pledging their royalties, intellectual properties and some other assets as a type of collateral.

Maria Petersen
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EDITOR AND WRITER At Industry News Coverage

Maria Petersen, one who a true enthusiast of the space, universe, and the outer world, has pursued a degree in Astrophysics. And this has made her an apt choice to write about the world of Science. Beginning a career in writing as a freelancer and then, gradually with hard work and passion, earned the position of Editor And Writer in our organization. Also loves to be called Content Crafter, Maria is given the responsibility to write blogs and news articles related to the Science field, entailing new findings & discoveries, inventions & innovations, new satellite & spacecraft liftoffs, galaxies & outer space, and much more.

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