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WeWork is reportedly leaning toward delaying its IPO

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WeWork is reportedly leaning toward delaying its IPO

Category : entrepreneur

WeWork will likely delay its planned public offering until at least October, The Wall Street Journal reported Monday, citing unnamed sources.

The We Company, which owns WeWork, said in a statement to Reuters that the company looks “forward to our upcoming IPO, which we expect to be completed by the end of the year.”

The company will not begin its planned roadshow this week, according to The Journal. A roadshow is the name for the series of meetings that startups have with potential investors immediately before a public offering.

WeWork made its IPO paperwork public last month and, according to Bloomberg, had been trying to debut on the markets by the end of this month.

But the company saw significant pushback from investors, who were reportedly concerned about its valuation, business model, governance, and potential resilience in a recession. Last week, the company was considering going public with a market capitalization of as little as $10 billion, less than a quarter the $47 billion valuation SoftBank conferred on it as part of an investment in January.

Read more: Why WeWork’s $47 billion private valuation could be a key stumbling block for its IPO — and might even derail it completely

WeWork’s struggles to go public have reverberated back on SoftBank. Two of the biggest backers of the Japanese conglomerate’s $100 billion Vision Fund are considering taking much smaller stakes in its planned follow-on fund, Bloomberg reported.

WeWork representatives did not immediately respond to an email seeking comment. Representatives for SoftBank, which is the biggest investor in the commercial-real-estate company, also did not immediately respond to an email seeking comment.

Got a tip about SoftBank or WeWork? Contact this reporter via email at twolverton@businessinsider.com, message him on Twitter @troywolv, or send him a secure message through Signal at 415.515.5594. You can also contact Business Insider securely via SecureDrop.

  • Read more about WeWork:
  • WeWork is doing increasing amounts of business with SoftBank, which is also its biggest investor
  • WeWork and Uber are giving SoftBank a black eye, but that doesn’t mean Vision Fund II is in trouble, experts say
  • WeWork says it has a $3 trillion market opportunity and has signed up only 0.2% of its potential customers. Here’s why real-estate experts say those numbers don’t add up.
  • Here’s how WeWork answered the 5 biggest questions about its business — and why analysts are still worried about its upcoming IPO
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About Author

Sammy Singh

Global VC, Founder, and entrepreneur extraordinaire as featured in Inc. Magazine, Bloomberg, and Forbes. Sammy Singh is a graduate of UCLA and Wharton School of Business as well as a former student of Loyola University of Chicago. Sammy is best known as a renowned financial technology global entrepreneur and has founded over 26 different firms across industry and all over the world. He is a venture capitalist,a TV/ Film actor, tax specialist, and marketing solutions strategist. Connect with Sammy Singh on social media below! www.linkedin.com/in/cfo www.instagram.com/champagnegqpapi www.facebook.com/officialsammysingh www.twitter.com/cxosynergy www.medium.com/@sammysingh www.crunchbase.com/sammysingh

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