WeWork, Uber drag SoftBank into first quarterly loss in 14 years

Softbank’s founder Masayoshi Son admitted that his earlier judgement of WeWork was ‘not right’ in many ways. Japanese technology investment firm SoftBank Group suffered its first quarterly loss in 14 years between July and September, dragged down by falling valuations of its biggest tech bets such as WeWork and Uber. The group’s giant Vision Fund made a 970 billion yen ($8.9bn) loss, a humbling blow for founder, chairman and chief executive Masayoshi Son even as he tries to raise an enormous sum for a second investment fund. Son, 62, told…

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China’s answer to WeWork, UCommune, files for US IPO

Beijing-based company surprised investment bankers by chasing a public listing after WeWork’s IPO debacle. Office-sharing firm WeWork’s disastrous attempt at going public is reportedly not deterring its smaller Chinese rival from seeking an initial public offering (IPO) in the United States. China‘s biggest shared workspace provider, Ucommune, has filed a confidential prospectus with the US securities regulator to launch its IPO before the end of the year, two people with direct knowledge of the matter told the Reuters news agency. The Beijing-based firm’s decision to explore a listing has surprised…

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SoftBank shares fall on plan to rescue WeWork

Japanese investor SoftBank says it is a ‘firm believer’ in the ongoing ‘transformation in the way people work’. Shares of Japan’s SoftBank Group Corp fell two percent in early trading in Tokyo on Wednesday as the tech conglomerate moved to take over beleaguered United States-based office-space sharing startup WeWork with a funding injection of around $10bn. “SoftBank is a firm believer that the world is undergoing a massive transformation in the way people work. WeWork is at the forefront of this revolution,” SoftBank Chairman and CEO Masayoshi Son said in…

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SoftBank to take control of WeWork, say sources

WeWork has been plunged into turmoil in recent weeks, scrapping its IPO and removing CEO and cofounder Adam Neumann. The board of office space-sharing company WeWork has accepted a takeover plan proposed by Softbank Group, handing control to the Japanese firm, according to “people familiar with the matter”. WeWork owner The We Company’s board was evaluating SoftBank’s offer against an alternative financing proposal from JPMorgan Chase & Co, but decided to go with SoftBank, even though the bank put together a $5bn debt financing package. This marks a stunning reversal…

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Toxic workplace: WeWork says carcinogen found in some offices

WeWork emailed tenants to say elevated levels of formaldehyde had been found in office phone booths in US and Canada. Cash-strapped WeWork, the office-sharing company that is trying to negotiate a financial lifeline, has a new problem that may prove costly. It has closed about 2,300 phone booths at some of its 223 sites in the United States and Canada after it says it discovered elevated levels of formaldehyde. The company, which abandoned plans for an initial public offering last month after investors questioned its mounting losses and the way…

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WeWork mulls curbing China expansion, hit by Fitch downgrade

WeWork is considering cutting costs in China, reported WSJ, as its credit rating is lowered again. WeWork is considering curbing expansion plans in China in an effort by parent The We Company’s new management to control costs, the Wall Street Journal reported, citing people familiar with the matter. After the recent departure of founder and Chief Executive Adam Neumann and shelved plans for a billion-dollar initial public offering (IPO), the company is looking to pull back on ventures in China and other less-profitable overseas market, the Journal reported. The We Company did…

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WeWork is not going public, for now IPO postponed

The We Company decided to focus on ‘core business’ rather than jumping onto the stock market amid investor scepticism. Investor valuation of The We Company dropped from nearly $50bn to around $10bn in a matter of months [Drew Angerer/Getty Images/AFP] WeWork’s parent The We Company said on Monday that it is filing to withdraw its initial public offering (IPO), a week after the SoftBank-backed office-sharing startup ousted founder Adam Neumann as its chief executive officer. The withdrawal of its IPO prospectus formalizes the end of the pursuit of a near-term…

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SoftBank bets big on WeWork

Japanese fund reportedly plans to increase its investment in controversial US startup, but could yet pull out of deal. Japanese technology investor SoftBank Group Corp is planning to pump an extra $1bn or more into WeWork by renegotiating an agreement struck before falling valuations delayed the US-based office-sharing startup’s initial public offering (IPO), the Financial Times newspaper has reported. The plan would increase SoftBank’s initially planned investment of $1.5bn in WeWork as part of the agreement, giving the US company the right to receive the money in April next year…

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Pressure mounts on WeWork CEO Adam Neumann as board weighs coup

The co-working space has been plagued by concerns over its CEO’s controversial style and control of the company. Adam Neumann has said his mission as WeWork’s chief executive is to elevate the world’s consciousness. Members of his board are now discussing a plan to elevate someone else to run the company and salvage its troubled initial public offering. The board plans to meet on Monday, people familiar with the situation said. There, some directors are expected to raise the prospect of Neumann stepping down as CEO and becoming non-executive chairman,…

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WeWork parent considers delaying stock market debut

Following pushback from investors, office space-sharing company reportedly could postpone its initial public offering. WeWork owner The We Company is considering delaying its initial public offering until October at the earliest, concerned that its stock market debut would be snubbed by many investors, people familiar with the matter said on Monday. The office-sharing startup based in the United States was making preparations to launch an investor roadshow for its IPO as early as this week. It is under pressure to proceed with the stock market flotation to secure funding for…

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WeWork presses on with IPO, as valuation tumbles further

WeWork has raised more than $12bn since its founding nine years ago, but the company may now only be worth that amount. WeWork is pressing ahead with plans for a public listing, announcing a series of governance changes aimed at shoring up a sagging valuation and assuaging critics who say it gave too much power to a polarizing co-founder. The company will trim the voting advantage that gives chief executive officer Adam Neumann sway over the board, and no member of his family will be allowed to sit on the…

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WeWork’s IPO plan looks increasingly troubled

The We Company is considering valuation roughly one-third of what the firm was valued at only months ago, sources say. The We Company, parent of office space provider WeWork, is considering slashing the valuation of its planned market debut to below $20bn, two people familiar with the matter told the Reuters news agency. The news comes amid reports that the company’s biggest investor has asked it to shelve its plans for the introductory public offering (IPO) due to weak demand. Having previously hoped to begin its roadshow pitching the IPO…

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WeWork considers slashing IPO valuation for stock market debut

Outlook for the shared workspace company is cooling, after disappointing offerings this year from Lyft and Uber. WeWork’s initial public offering won’t be quite the celebration the office-rental unicorn once foresaw. The New York-based startup is considering seeking a valuation of about $20 billion to $30 billion in the IPO, people with knowledge of the matter said. The range could end up closer to $20 billion, said one of the people, which would be less than half the valuation it secured from its biggest backer just a few months ago.…

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WeWork CEO Adam Neumann has reportedly cashed out of over $700 million ahead of its IPO – TechCrunch

Adam Neumann, the co-founder and chief executive of the international real estate co-working startup, WeWork, has reportedly cashed out of more than $700 million from his company ahead of its initial public offering. The size and timing of the payouts, made through a mix of stock sales and loans secured by his equity in the […] Source: WeWork CEO Adam Neumann has reportedly cashed out of over $700 million ahead of its IPO – TechCrunch

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