WeWork is going public with a sharply decreasing valuation
The valuation targets for controversial real estate company WeWork are being dramatically lowered and the real estate company may not go public next week, according to CNBC.
„Even at a $25 billion valuation, the demand is not there”. WeWork last raised money at a $47 billion valuation in the private market.
WeWork’s earlier valuation came after SoftBank, the company’s biggest backer, invested $5 billion in primary growth capital and an additional $1 billion in secondary funding.
WeWork started as a single space located in lower Manhattan in 2010, and has grown to 528 locations in 111 cities across 29 countries. It has more than 527,000 memberships, or individuals that rent space in its shared offices, which offer a full suite of office services, including technology, mail pickup and delivery, communal spaces, fresh brewed coffee and fruit.
The company makes money by selling memberships, offering ancillary services and extending the global platform beyond the world of work, according to the prospectus. It has branched out to fully-furnished short- and long-term stay apartments and hotel rooms; it is behind Meetup, the platform that connects people who share interests or want to organize events; it opened an independent elementary school in New York in 2018.