Coworking chain WeWork is thinking about going public

 Office and coworking rental service WeWork is thinking about going public, WSJ sources familiar with the negotiations told. The placement can proceed according to a scheme that involves a merger with a special company.


For weeks, WeWork's board of directors and CEO Sandeep Matrani have been considering a merger offer from a venture capital firm, Bow Capital, and another unnamed entity, sources said. According to them, the company can be valued at $ 10 billion, it is not known, with or without debts.


In addition, the company received proposals for a new round of private investment, it can choose this option and not go public, said one of the interlocutors. Negotiations are complex and there is no guarantee that WeWork will close any deal any time soon, the sources said.


WeWork told the WSJ that it is exploring opportunities to help the company achieve its goal of profitability.


WeWork announced plans to conduct an IPO in August 2019. The company filed documents with the US Securities and Exchange Commission and disclosed financial indicators: with revenue of $ 1.54 billion, the company had losses in the amount of $ 904 million in the first half of 2019.


A month later, at the end of September 2019, the company withdrew the documents and changed its mind about going public. The interlocutors of the publication associate the decision with the concern of investors about the real cost of the startup. In January 2019, investors valued WeWork at $ 47 billion, but in preparation for the IPO, the company had to lower the valuation to $ 20-30 billion.


During the period from August to September, the company also had scandals related to the behavior of the company's management, due to which, under pressure from the board of directors, WeWork founder Adam Newman left the post of CEO.

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