It’s been a pretty tough month for the co-working (shared workplace space) company WeWorkaka The We Company. The company has seen its valuation plummet. The up to date valuation is now mentioned to be at most $20 billion with rumors of even lower figures. There are claims that SoftBank desires the IPO stopped so that it would not undergo embarrassing losses in its funds.
In any case, it is a massive disappointment for WeWork, which was speculated to IPO at as a lot as a $60 billion valuation.
It in all probability should not come as a shock, however. The media has wholly savaged the proposed IPO, with everybody piling on for the reason that the company filed its IPO prospectus. The company gave analysts plenty of reasons to mock them, beginning with this bit from the opening page.
WeWork’s CEO has drawn loads of criticism for not being a reputable leader, and this kind of commentary of their prospectus helps you understand why people are nervous.
Anyway, right here at Seeking Alpha, even earlier than the company starts buying and selling, people are lining up to label this one of many year’s worst IPOs – in reality, each author recently is coming in “very bearish” on the company.
The bear case on WeWork is so broadly accepted that he needed to do some digging to find individuals bullish on the company. Again, keep in mind we’re speaking about a $20 billion firm (and one which theoretically was worth $50bn+ recently) and hardly anybody is defending it in public. You’ve companies which have apparent operational issues and questionable CEO decision-making – like Tesla – that also don’t have any scarcity of backers. But WeWork is universally panned.