- Softbank is Weworks largest investor
- The company valuation has been cut in half since the beginning of the year
- Softbank has invested $2 billion into the company so far
“SoftBank, WeWork’s biggest outside investor, is urging the startup to shelve its initial public offering, sources told CNBC’s Leslie Picker.
News of SoftBank’s urging WeWork to put off its IPO was initially reported by the Financial Times.
The We Co., as the co-working company is formally called, had been in discussions with SoftBank and other shareholders and advisors about whether or not to move ahead with its IPO, CNBC reported on Friday. WeWork has faced criticism regarding its complicated corporate structure, its governance and payments made to CEO Adam Neumann.
WeWork advisors are still evaluating investor appetite for an IPO valuation between $15 billion and $20 billion, according to the Financial Times. That would be less than half of the $47 billion valuation the company was given when SoftBank invested $2 billion in the startup in January”. Click here for the full article