WeWork stock market debut in doubt

John Parker - September 12, 2019

The most renowned and hotly anticipated event for the financial sector –WeWork is very much in doubt about the debut of its stock market. An investment firm from Japan –SoftBank is a 30% shareholder of WeWork. The firm has recently urged for the hotly financial event to drop off its flotation plan.

The signs that have followed the pressure made by the outside investors shows that they do not value the hyped firm –WeWork as much as SoftBank when it invested in it the previous year. The value paid by SoftBank for holding 30-percent of the shares of WeWork amount to $47 billion.

However, certain intuitions arising that would drop the share offering of the firm’s worth more than 20 billion dollars. This is because many opaque questions are being raised by the investors concerning the governance, corporate structure, and profitability of the firm.

SoftBank would receive a low blow for lower evaluation of WeWork, which would force the Japanese company to write-down all its investments. According to the verdict made by ‘The Financial Times’, SoftBank was very much worried about its fundraising projects being affected due to the lower evaluation of WeWork. However, the chief of SoftBank, Masayoshi Son has released a positive statement saying that the profitability of WeWork shall surge after experiencing a period of loss-making.

John Parker is a finance writer and journalist based in the Outer Banks, NC.

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