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. The outlook for the public debt of WeWork, which has racked up billions of dollars in losses in recent years as the company funds grand ambitions, is cooling after and the disappointments of other major IPOs this year such as Lyft Inc. and Uber Technologies Inc. That could put pressure on WeWork, which has a mammoth credit line tied to the success of the IPO, as well as SoftBank Group Corp., which invested at a $47 billion valuation earlier this year. 'They would probably price this thing at the more conservative end, maybe in the $20 billion range, … [Read more...] about WeWork Targets $20 Billion to $30 Billion IPO Value
A year ago, just a few months after joining WeWork as head of enterprise business, Veresh Sita strode onto a stage at Madison Square Garden during the company’s annual global summit to announce a whole new direction for the company. Blue and red lights beamed around the cavernous arena as Sita addressed 4,000 of his raucous new colleagues. “You heard earlier speakers talk about this as our equivalent of AWS,” he said, referring to Amazon Web Services, the online retailer’s massively lucrative cloud business. “We have built these amazing workplaces and we’re now able to take these workplaces into enterprises.” He was talking about a newly launched product called Powered By We, a design, renovation, and office management service. Powered by We was a big expansion from the company’s previous business, which required customers to take space—a desk, a personalized office—inside of a WeWork leased property. Now, WeWork could come … [Read more...] about WeWork grows up (and out and everywhere)
London (CNN Business)1. More tech trouble: Samsung has warned that its fourth-quarter operating profit is set to plunge nearly 30% compared to last year. The South Korean company blamed the sharp drop on "lackluster demand" for its memory chips and "intensifying competition" in the smartphone industry. The guidance comes after Apple (AAPL) warned last week it will sell fewer iPhones than previously expected, mainly because of an economic slowdown in China. That announcement sparked a deep sell-off in Apple's shares and the wider stock markets. Samsung, the world's largest smartphone maker, didn't mention China in its earnings guidance, but it said that "mounting" macroeconomic uncertainties were affecting its business. Read More 2. SoftBank rethinks WeWork: SoftBank is planning to inject $2 billion into coworking space company WeWork, a person familiar with the deal told CNN Business. The source said the deal is expected to close this week. The investment, first reported by the … [Read more...] about Samsung warning; SoftBank and WeWork; Carlos Ghosn speaks in public
SoftBank is increasing its ownership stake in WeWork yet again, investing a further $2 billion in the fast-growing co-working company, according to three people familiar with the deal. But the deal, which is likely to be announced this week, is far smaller than an investment that was recently under consideration and could have been worth some $16 billion, the people said. They spoke on the condition of anonymity because they were not authorized to talk about the deal publicly. The latest investment — which is coming from SoftBank itself, not its nearly $100 billion Vision Fund — values WeWork at $47 billion, and brings SoftBank’s total investment in WeWork to about $10.5 billion, they said. SoftBank, a Japanese telecom conglomerate led by the billionaire Masayoshi Son, is reinforcing its commitment to WeWork even as the complex relationship between the two companies is under growing scrutiny. SoftBank now has multiple investments in WeWork, including equity … [Read more...] about SoftBank Bets Big on WeWork. Again.
Corrections and Clarifications: An earlier version of this story misstated Julie Rice’s title, her time on the corporate leadership team compared with other members and the focus of her job. It also misstated the number of months she had been on the job and gave an incorrect number of WeMRKT locations. The story was published accidentally. WeWork has a story to tell, and it's counting on Julie Rice, a partner at the co-working giant, to do the telling. On the one hand, it's the tale of a company that took the rather banal idea of shared office space and made it cool, creating a start-up darling that is valued at $20 billion and mentioned in the same breath as industry disruptors like Uber and Tesla. But WeWork's ambition – which has led to it currently opening at least 20 new locations a month and the business stamping its brand on everything from sweatshirts to apartments and even schools – has failed to … [Read more...] about WeWork puts its stamp on more than office space, but profits remain hard to come by