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WeWork's estimate drops by more than half to $ 20 billion



NEW YORK – As the parent company of WeWork, the US-based shared office provider that Japan's SoftBank Group has made serious bets on, is targeting an expected initial public offering, its target estimate has dropped to about $ 20 billion, less than half of where it was when it last raised funds, according to several US media reports.

As investors begin to cast a keen eye on the growth potential of startup losing money, reports by The We Company are considering whether

the company is expected to make public in New York later this month.

The last time the Company raised funds, earlier this year, it was estimated at $ 47 billion.

The IPO target estimate puts the company well below $ 82 billion, which debuted Uber Technologies four months ago. The workspace provider is expected to launch investor briefings next week, and market attention is focused on how investors will react.

The Wall Street Journal reports in its online publication that Adam Neumann, CEO of The We Company, visited Japan in late August and met with SoftBank Group Chairman and President Masayoshi Son.

SoftBank Group has invested more than $ 1

0 billion in the workspace broker.

According to the magazine's report, Neumann and Son discuss a number of corporate value incentive measures, including additional equity investment by SoftBank.

WeWork's business model involves purchasing office space in major cities around the world, then renovating the premises and installing office furniture and equipment. Finally, it divides the space into freelancers, small business owners, even corporate employees on short-term basis.

By the end of June, WeWork had 527,000 tenants, up 30% from half a year earlier. [19659002] In the world, real estate markets, especially in the US, are usually rigid, with rents sloping. However, the global economy is gaining momentum and there are concerns that WeWork's revenue could decline significantly if the upward trend in rents reverses south.

Last month, the We Company presented a prospectus to the American Securities and Exchange Commission or the SEC. According to the prospectus, WeWork's global customer base has grown in 2018 and the company's sales have doubled to $ 1.82 billion.

But the company's net loss rose 80% to $ 1.6 billion due to property purchases, sales promotion and other expenses.


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