WeWork’s Valuation is Down More than 90% from its Top

Posted on 05/18/2020

WeWork (The We Company) is now valued at US$ 2.9 billion, after Japan-based SoftBank Group Corporation disclosed its latest financials. WeWork is down in value more than 90% from its top. SoftBank has invested more than US$ 10 billion in WeWork through various instruments.

In 2019, WeWork failed to go public. SoftBank Group quickly stepped in to shore up a bailout. However, the coronavirus pandemic tore up the company financially, as white-collar workers are in lock down mode across many parts of the globe. WeWork CEO Chief Executive Officer Sandeep Mathrani revealed on CNBC that the company collected 70% of its rent in April 2020.

Last, SoftBank is engaged in a legal dispute with two WeWork directors and co-founder Adam Neumann. This is after SoftBank decided to back out of a US$ 3 billion tender offer that was a measure in the bailout.

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