SoftBank urges WeWork to shelve IPO over valuation concerns: FT

Business

FILE PHOTO: The WeWork logo is displayed outside of a co-working space in New York City, New York U.S., January 8, 2019. REUTERS/Brendan McDermid/File Photo

(Reuters) – SoftBank Group (9984.T), a top shareholder in the holding company of U.S. office-sharing startup WeWork, is urging it to shelve a planned IPO on concerns over the valuation that can be achieved in a listing, the Financial Times reported on Monday.

A SoftBank spokeswoman declined to comment on the report, which cited sources familiar with the matter.

Investor scepticism has already forced money-losing The We Company to weigh slashing its IPO valuation to a little more than $20 billion, sources told Reuters last week, following weak initial trading at other startups including SoftBank-backed Uber Technologies Inc (UBER.N).

While SoftBank and its $100 billion Vision Fund emphasize their long term investing credentials, founder and CEO Masayoshi Son has set out an ambitious IPO pipeline for its tech investments, spanning ride-hailing, fintech and health startups.

Putting the IPO of We Company on hold would disrupt that schedule at a time when SoftBank is seeking funds from investors for a second Vision Fund.

SoftBank made a follow-up investment in We Company, one of its biggest tech bets, at a $47 billion valuation earlier this year – a number widely treated with scepticism by analysts.

Reporting by Bharath Manjesh in Bengaluru and Sam Nussey in Tokyo; Editing by Maju Samuel and Muralikumar Anantharaman

Products You May Like

Articles You May Like

Japan to step up efforts on coronavirus testing, containment after first death
Russia’s Rosneft pledges $5 billion for ‘green’ causes over next five years
After slamming prosecutors and judge, Trump turns ire on jurors in Stone case
Vietnam turns away two cruise ships over coronavirus fears
Monfils fells Auger-Aliassime to defend Rotterdam Open crown

Leave a Reply

Your email address will not be published. Required fields are marked *