WeWork presses on with IPO (15b-18b instead of 47b), pushing SoftBank into a corner
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BUSINESS NEWS SEPTEMBER 10, 2019 / 11:11 AM / UPDATED 14 HOURS AGO

Anirban Sen, Joshua Franklin


(Reuters) - Office-sharing startup WeWork is pressing ahead with plans to go public despite lukewarm interest in its shares, three sources said, leaving its largest investor, SoftBank Group (9984.T), with a stark choice: take a haircut or pony up even more cash.

The We Company, WeWork’s parent, may seek a valuation as low as US$15 billion to US$18 billion in an initial public offering, down from the US$47 billion value it commanded in the last private fundraising round in January

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That means SoftBank, which has invested US$10.65 billion in WeWork since 2017 through its Saudi-backed US$100 billion Vision Fund and other vehicles, would have to write down the value of its investment should the IPO go ahead.

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Returns for SoftBank first Vision Fund have already been hit by lackluster listings of Uber (UBER.N) and Slack (WORK.N).
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Much more info at Reuters: https://www.reuters.com/article/us-wewor...SKCN1VV07C
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