WeWork mulls slashing IPO valuation as skepticism rises over business model: sources

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WeWork considers slashing IPO valuation amid pushback: sources

), have fared poorly in subsequent trading, amid investor skepticism over their lack of a concrete plan to profitability.

The sources cautioned that no decision on the valuation has been taken and asked not to be identified because the deliberations are confidential. The We Company declined to comment. The Wall Street Journal reported earlier on Thursday that the We Company was considering an IPO valuation of around $20 billion.

FILE PHOTO: The WeWork logo is displayed on the entrance of a co-working space in New York City, New York U.S., January 8, 2019. REUTERS/Brendan McDermid “The market has changed very much since Uber and Lyft went public. What investors want now is an appropriate discount to price in the risk and have greater comfort that it won’t fall below the IPO price,” said Barry Oxford, a real estate analyst at D.A. Davidson & Company.WeWork, which was rebranded We Company earlier this year, is backed by Japan’s SoftBank Group Corp , which has invested or committed to invest $10.65 billion since 2017.

The We Company has also faced a criticism from some investors over its extensive and unusual ties with Neumann, including him being a landlord to the company on some properties, and initial plans to go public with an all-male board.

 

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