WeWork's Valuation to Slips Below $8 Billion
In January WeWork raised money at a $47 billion private valuation. Since then the embattled company has seen a failed IPO, a shake up in leadership in which co-founder Adam Neumann resigned as CEO last month, and a new valuation of less than $8 billion. SoftBank has now calculated that WeWork needs at least $3 billion to operate through the next year, and could run out of cash next month without a debt offering, according to The Wall Street Journal.
The latest proposal from SoftBank could not be the bottom as it is subject to change. The Japanese company, already WeWork's largest investor, is reportedly sharing its proposal with about 100 investors. JPMorgan is also considering a bailout plan for the company. A source told Business Insider that a debt package from the bank could be in the billions.