WeWork valuation below 8 billion dollars – Bloomberg



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US banks start the earnings season next week

The US banks will start the earnings season during next week. For example Citigroup, Wells Fargo, JP Morgan, Goldman Sachs and Bank of America will be in the headlines. One of the big questions is the low interest rates and how the banks are coping with the margins.

It is also a question about the timing. How quickly the banks can swift the low rates to deposits? On the other hand mortgage loans are expected to have shown good trend for banks during the third quarter.

For investment bankers, the recent office-rentals company WeWork´s failed IPO listing might show some write offs in the balance sheet. The market valuation for the WeWork was expected to be around 47 billion dollars before the financial worries started.

The financial markets in general have faced the US China trade talks as an issue for market volatility. Now, when the first phase of the deal between the US and China, has been announced on Friday, the situation is expected to calm down a little when more information of the deal will be revealed.

The market speculation of the low interest rates policy in Europe, US and other Asian countries, is expected to continue while for example the US Central Bank Federal Reserve, Fed is expected to make one rate cut in October, according to Reuters.

The reason for low interest rates policy is the global growth concerns due to geopolitical differences, several trade talks and Brexit. In the UK, the Prime Minister Boris Johnson has said on Sunday that he believes the deal can be reached. On the other hand, the EU´s opinion is that the Brexit Plan is not good enough for the EU leaders Summit on the 17-18th October in Brussels.


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WeWork´s layoffs and credit rating cut

The US office-rental company WeWork has said it is in the process of laying some of its employees after the abandoned IPO process. According to Bloomberg, the size of the layoffs will be published later this month.
The company faced also a credit rating cut from Fitch. According to Fitch, the office provider is now in the CCC+ category, which means a junk bond rating. The credit outlook is now negative.
WeWork was planning a 20 billion dollar IPO deal for this autumn, but the largest owner Softbank decided to postpone the IPO related to market conditions.
After the decision the company also announced changes in the top management. The company has now two co-CEOs Artie Minson and Sebastian Gunningham after the former CEO Adam Neumann decided to step back from operating role and focus on the board work.


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WeWork is postponing IPO to October earliest – WSJ

The US office rental company WeWork is postponing its planned IPO untill October at earliest, says the Wall Street Journal.

According to the newspaper, the company has faced so many valuation concerns that the company is postponing the IPO.

In August WeWork indicated that the listing would be with 3-4 billion dollars. The company also informed about plans to raise debt up to 6 billion dollars.

The recent speculation about the unicorns techvaluation have raised some concerns about the market values in general and the corporate governance practises related for example privacy issues.

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WeWork continues its listing process next week – WSJ

The US rental office company WeWork is planning to continue its listing process next week in spite of the recent speculation about its market value. According to Wall Street Journal the company has chosen Nasdaq as its marketplace and the investor road show will begin next week.

The trading of the WeWork shares are expected to star at the end of September. According to WSJ, the company has made some governance changes ahead of the process.

During the couple of weeks there has been wide speculation about the tech unicorns valuation and how the tech companies can earn money if the business model is heavily based on low interest rates economy.



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WeWork´s billions IPO and 6 billion debt

The US office-rental company WeWork is planning an IPO with 3-4 billions dollars. The company announced today more info about its figures, which shows the company had a revenue of 1,8 billion dollars during the first 6 months of 2019 and the loss was 700 million dollars. The company published also its plans to raise up to 6 billion dollars in debt.

– We have a history of losses and if we continue to grow at an accelerated rate, we may be unable to achieve profitability at a company level, WeWork said. According to the company also the average revenue per membership has declined and the company expects the trend to continue.

The Japan SoftBank is one of the largest investors behind WeWork and the company has offices in over 100 cities worldwide.

Corrected: WeWork is expected to raise 3-4 billion dollars according to Wall Street Journal

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