The start-up for shared workspaces WeWork is considering putting its stock market debut in the refrigerator for a while. Insiders say that against the Bloomberg news agency. The large investor in the SoftBank company would also have influence behind the scenes to move the IPO.
Investors are no longer so keen on the hip landlord of office spaces. According to sources, the business model and the way integrity rules are enforced at WeWork cause investors “serious concerns”. WeWork planned to do the first round of investors this week to gauge interest in the IPO.
Within just a few months, WeWork’s reputation has plummeted from a promising start-up to a company that few investors seem to be waiting for. Goldman Sachs investment bank valued the landlord of office spaces at $ 65 billion earlier this year. However, last week there were rumors that WeWork thought it was worth only $ 20 billion.
An IPO with a hefty discount, which now seems likely, is not an option for SoftBank, insiders told the Financial Times business newspaper. That would mean a loss of face for the Japanese investor who is currently looking for financing for a second fund that will invest in technology start-ups such as WeWork. Through its first fund, SoftBank has now invested 10 billion dollars in the lessor of office spaces, of which 2 billion dollars this year.