NEW YORK: Trading in shares of WeWork in the private over-the-counter market has almost ground to a halt, underscoring a loss of investor confidence in the office-sharing company and providing further evidence of its recent huge loss in value.
That would value the company at around US$7 billion based on the 338.4 million shares on issue, an extraordinary decline from the US$47 billion valuation it had in January when SoftBank Group Corp last invested through its Vision Fund and from the private market value of US$30 billion that one source said was prevailing in June."We've seen zero interest in trading on the secondary market for WeWork.
As well as its major shareholder, Japan's SoftBank, owners of WeWork stock include many leaders from the venture capital and investment worlds, such as Benchmark Capital, JPMorgan Chase & Co , Goldman Sachs Group Inc , Harvard Management Co and Fidelity Management & Research, according to the Pitchbook database.WeWork declined to comment on the trading activity of its shares in the private market.
The lack of interest in WeWork stock is a further indication of how confidence in WeWork has cratered in the space of a few weeks, the private market sources said.