SoftBank urges WeWork to shelve IPO over valuation concerns: FT

11 Septembre, 2019, 01:43 | Auteur: Auguste Feret
  • WeWork plans to go public

Last Wednesday, Rennaisance Capital co-founder and chairwoman Kathleen Smith told CNBC that the poor IPO performances of Uber and Lyft-especially given the similar unprofitable natures of their business models-could reflect directly on the We Company's public debut.

A lower valuation would be a blow to SoftBank, forcing it to write-down its investment.

Such a low valuation could be a boon to investors.

Some investors are also anxious about skepticism surrounding the company's business model and want its planned initial public offering (IPO) to be pushed to next year, sources said on condition of anonymity. SoftBank declined to comment.

In accordance with the report, SoftBank is anxious that if WeWork goes public at a valuation a lot decrease than its private-market valuation, it'd harm the agency's potential to boost its second Vision Fund, therefore its option to strain the corporate into dropping its IPO plans.

Returns for SoftBank first Vision Fund have already been hit by lackluster listings of Uber and Slack.

Vaping Death toll rises to five due to mysterious lung disease
Whether the oils in the lungs came from the e-cigarettes, the body, or somewhere else entirely, is up for debate. The trouble is that no single device, liquid or ingredient has been tied to the illnesses, officials said.

Duty-free shopping to return under no-deal Brexit: UK chancellor
Members of Parliament (MPs) were expected to vote against another call by Johnson for a snap general election on Monday. He wants an election to break the deadlock. "There is a way of getting a deal but it will require a lot of hard work".

Tick, tock: OBJ plans to keep wearing lavish watch in games
It was a pretty hilarious sight that had NFL fans mesmerized about how one player could flex so hard on the entire league. Odell Beckham Jr . plans to continue wearing his Richard Mille watch during games despite objections from the NFL .

The company is continuing to talk to its biggest investor, SoftBank Group Corp., about whether the Japanese technology giant would put in additional capital through the IPO by buying a significant portion of the shares on offer or invest a chunk of money that would allow We to delay its IPO until 2020. Goldman Sachs investment bank valued the landlord of office spaces at $ 65 billion earlier this year.

Sanford C. Bernstein analyst Chris Lane said that if WeWork halted its IPO, SoftBank could come up with an alternative funding plan for the startup, which he estimates needs $9 billion in funding to become cash-flow positive.

The pressure follows signs that outside investors do not value the much-hyped firm as highly as SoftBank did when it invested a year ago. "(The We Company) will have to listen to them", said Lane, who values the office space-sharing firm at $23 billion.

Tech conglomerate SoftBank has burned through much of the $100 billion raised by its first Vision Fund in just two years, recording big paper gains on internal revaluations of its tech investments.

SoftBank defends its valuation techniques, which include cash-flow analysis, recent transactions and comparison with peers to underpin its numbers.

At the end of June the fund recorded the value of $71 billion in investments in 83 startups as having grown by $20 billion. It was reported that the company was serious about decreasing the amount it could seek in a public offering under the $20 billion figure that had been previously reported.

Conseillé:



Populaire

Foreign Secretary condemns Iran over Adrian Darya 1 oil tanker
The ship was photographed off the coast of on Friday and is believed to have been carrying 2.1 million barrels of Iranian crude oil.

TrojanSports - Lynn Swann out as AD
The 67-year-old Swann was hired in 2016 despite no significant experience in athletic administration. The Pro Football Hall of Fame receiver spent nine years with the Pittsburgh Steelers.

President-elect unveils new EU Commission team
As the Internal Market Commissioner, Sylvie Goulard will lead work on industrial policy and promote the digital single market. Now it is up to the European Parliament to question the proposed candidates for the new Commission in detail.

Lille : disparition inquiétante d'une jeune handicapée
Il reste environ 10 000 disparitions non élucidées classées inquiétantes, chaque année. L'avis de disparition précise qu'elle a en " âge apparent 13 ans ".

Raiders corner (neck) ‘going to be OK’ after stretchered from field
Trainers were working on Conley for several moments before putting him on a stretcher and carrying him out of the stadium. He left the field on a backboard and gave a thumbs up to the crowd upon departing.

La nouvelle Ligue des champions attendra
Lundi 9 et mardi 10 septembre avait lieu à Genève l'assemblée générale de l'Association européenne des clubs (ECA ). Une évolution inacceptable pour nombre de clubs et de ligues, dont la Premier League anglaise.

Jean-Marie Bigard : Sa nouvelle réponse cash à Muriel Robin
Il revient aussi sur les propos de Muriel Robin au sujet de sa fille: "Ma pauvre Muriel, tu as perdu tout le sens des réalités". Des propos qui ont évidemment choqué la principale concernée lorsqu'elle les a découverts sur le plateau de C à Vous .

Ex-FEMA officials, contractor accused of Puerto Rico hurricane relief fraud
In return, Tribble pressured FEMA and the Puerto Rico Electric Power Authority to steer work to Ellison's firm, prosecutors say. Charges filed against Tribble and Ellison include conspiracy to commit bribery, honest-services wire fraud and disaster fraud.

United Nations rights chief Michelle Bachelet mentions Kashmir, NRC
And they actually said, 'Would you like to be a mediator or arbitrator?' I said, 'Where?' (Modi said) 'Kashmir. Its interesting to know India sent a diplomat from who hails from Jammu and Kashmir to respond Pakistan FM.

Brexit: Boris Johnson's election bid was voted down, so what next?
Johnson acknowledged Monday that a no-deal Brexit "would be a failure of statecraft" for which he would be partially to blame. A small scuffle ensued as an opposition MP attempted to keep Bercow from a ceremony that officially closes Parliament.