Before WeWork gunned for an IPO, the company was dazzling. It had made itself the second most valuable US tech startup at the time, with a valuation of US$47 billion. It had 485 locations across 28 countries in mid-2019.
WeWork made itself the first name on anyone’s mind when they thought of coworking.
But when they filed to go public, holes in the picture came to light. Investors realised the company’s corporate governance was in a mess. More notably, WeWork was losing way too much money to justify the gargantuan valuation. They lost almost US$2 billion on a US$1.8 billion revenue in 2018.
Image Credit: AFPNews of the canned IPO was shocking, but not really surprising.
It was generally known that WeWork was a long way from profitability, leaving people uncertain about their business model and how they would eventually turn things around.
Vulcan Post Premium Content
If you are interested to continue reading this article, please subscribe or log into your Vulcan Post premium account.
Already a subscriber? Log in here