After CEO Adam Neumann stepped down from the company, WeWork ended their plans to go public after a lack of investor interest, according to Business Insider.
What We Know:
- WeWork is a service that allows companies to rent/buy workspaces. This is primarily used by startup companies.
- Neuman allowed WeWork to rent his building after he stepped down and he received heavy criticism for this. He also trademarked the right to the word “We.” He still remains as Chairman of the We Company.
- The company was valued at $47 billion when it was private. After filling with the SEC, billions of losses were reported.
- Presidential candidate Andrew Yang stated how it was utterly ridiculous that WeWorks was valued at $47 billion.
For what it’s worth I agree with @profgalloway that WeWork’s valuation is utterly ridiculous https://t.co/CiqLasP5Sk if they are a tech company so is UPS. UPS trades for 1.4x revenue not 26x.
— Andrew Yang (@AndrewYang) August 21, 2019
WeWork is set to run out of cash next spring at the current pace it is spending. They have a $6 billion loan. They could have $3 billion in capital if they went public according to Bloomberg.