WeWork resigned after the resignation of the CEO after the failure of funding
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“ WeWork ”, which provides coworking space, announced on September 30, 2019 that it will “withdraw the securities registration statement submitted to the Securities and Exchange Commission”. Although the service will continue, the company announced that it would abandon the originally planned initial public offering (IPO) plan.
WeWork to Withdraw S-1 Registration Statement | Business Wire
https://www.businesswire.com/news/home/20190930005559/en/WeWork-Withdraw-S-1-Registration-Statement
WeWork throws in the towel on its ill-fated IPO-Reuters
https://www.reuters.com/article/us-wework-ipo/wework-says-will-file-to-withdraw-ipo-idUSKBN1WF1NS
WeWork, a co-working space provider that has achieved rapid growth by leveraging the lightness of a short-term lease contract for a minimum of one month, filed a securities registration with the US Securities and Exchange Commission on August 14, 2019 (S-1) is submitted. With the goal of becoming a member of a listed company through the implementation of an IPO, we were proceeding with preparations such as raising funds.
However, the lack of a business model discovered by the release of S-1 has become a problem, and the possibility of IPO is severe due to the fact that WeNew's founder Adam Newman CEO's behavior is conspicuous The view was spreading.
You can understand the problems associated with the listing application of WeWork by reading the following article.
Experts criticize `` WeWork '' where Softbank made a large investment but failed in IPO & CEO retired on a big flame-GIGAZINE
Meanwhile, Artie Minson and Sebastian Ganningham, who took on the role of co-CEO on behalf of Newman, who resigned as CEO, released a statement on September 30, 2019, `` We will focus on our core business, 'I decided to postpone the IPO,' he said, indicating his idea to postpone the IPO application indefinitely.
On the other hand, we made a commitment to provide the same services to corporate customers, members, and real estate owners as before, and IPO was postponed to the end, aiming for future stock listings. It reveals its attitude.
by Phillip Pessar
However, although WeWork's sales in 2018 were about 1.8 billion dollars (about 195 billion yen), nearly double that of the previous year, the deficit is more than doubled to 1.9 billion dollars (about 205 billion yen) However, it is clear from S-1 that we cannot be optimistic about the WeWork business.
In addition, WeWork had attached $ 6 billion (about 650 billion yen) from the bank in August, but at that time as a condition to raise at least $ 3 billion (about 325 billion yen) by IPO So, withdrawing the IPO this time, a total of $ 9 billion (about 973.5 billion yen) of funds was attributed to Mizu bubble. In addition, according to the economic paper Reuters , 'Analysts expect WeWork to run out of billions of dollars over the years,' WeWork will raise a huge amount of additional funds somehow in the future. There is a need to do.
According to a source who commented on Reuters, `` WeWork has entered into discussions to receive new additional funds from Softbank etc. '', and the future fate of WeWork will be about one third of all shares Is considered to be held by Softbank, the largest shareholder.
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