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Home https://server7.kproxy.com/servlet/redirect.srv/sruj/smyrwpoii/p2/ Business https://server7.kproxy.com/servlet/redirect.srv/sruj/smyrwpoii/p2/ Problems continue to mount for the company, as Softbank reportedly calls for cancellation of IPO – TechCrunch

Problems continue to mount for the company, as Softbank reportedly calls for cancellation of IPO – TechCrunch



The problems for We Company and its core business, WeWork, compounded when Financial Times reported that the company's backer, Softbank, had urged the company to place its difficult public offering. [19659002] Referring to sources familiar with the company and its main investor, the Financial Times says that the great reception we received from public market investors.

The company has to raise at least $ 3 billion in public offering to raise $ 6 billion in debt financing from the bankers themselves, who are designing their IPO. Failure to cross that $ 3 billion threshold and no access to this debt will be a significant impediment to the global expansion plans of the company we are. And these plans are vital to the success of the company, as this is the growth story the company sells to investors in the public market.

Over the weekend the Wall Street Journal reports that the company is thinking of reducing the amount it would like for a public offering below the $ 20 billion figure previously reported.

We recently raised money at a valuation of more than $ 47 billion, and the constant decline in the value of the company could create a self-fulfilling prophecy that pushes the stock price even further if the company goes public.

The company even took steps to repeal some of the more awful financial arrangements that made investors look at the company. She added a woman to the board of directors after much publicity about the board's composition and launched a nearly $ 6 million agreement the company had signed with its CEO Adam Neumann on licensing rights for the We brand.

However, Neumann's control of the company and the growing losses of its core business, the leasing of long-term retail space to short-term tenants, have made public investors indisputable about the company's long-term prospects.


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