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WeWork may soldier on with its IPO despite reports that it's slashing its valuation by more than half

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WeWork may soldier on with its IPO despite reports that it's slashing its valuation by more than half
WeWork may soldier on with its IPO despite reports that it's slashing its valuation by more than half

WeWork may have slashed its value by more than half, but the company won't delay its IPO process, according to a new report from CNBC.

WeWork will proceed with its IPO plans and could begin courting investors as early as next week, according to a new report from CNBC's David Faber and Michael Sheetz.

WeWork rebranded itself as The We Company earlier this year to prepare for its IPO and filed its S-1 in August. However, the company has faced increased scrutiny regarding the long-term viability of its real estate investments and co-working space business.

Skepticism from investors has reportedly led WeWork to set its valuation at about $20 billion for the IPO, less than half of the $47 billion valuation the company announced earlier this year. WeWork's S-1 revealed that the company is not profitable— in 2018 The We Company generated $1.8 billion in revenue but suffered $1.9 billion in losses.

Read more: WeWork isn't even close to being profitable — it loses $219,000 every hour of every day

Softbank, The We Company's largest outside shareholder, reportedly asked the company to delay its IPO. SoftBank and its Saudi-backed Vision Fund have invested more than $10 billion in WeWork, and CNBC notes that it could face a multi-billion-dollar write-down if WeWork makes it debut with a valuation between $15 and $20 billion.

The We Company did not immediately respond to Business Insider's request for comment. 

WeWork's roadshow to seek out potential investors could begin as early as Monday, September 10, CNBC reports.

Read the original article on Business Insider
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