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The 'We' Company founder Adam Neumann has had a terrible run this month, and while it's hard to feel bad for a billionaire, Neumann has seen his net worth plunge to just a fraction of what it was just one week ago.
On Wednesday, the value of WeWork plunged to a new low of $15 billion, less than one-third of the $47 billion the startup was valued at during its most recent private funding round. Meanwhile, Neumann has watched the value of his 22% stake in the company he founded plunge from $14 billion to just $3 billion. That's not high enough to earn a place in Bloomberg's ranking of the world's 500 richest people.
Prospects - WeWork - IPO - Flurry - Reports
The prospects for WeWork's IPO started sinking with a flurry of reports that started with WSJ reporting late last week that the company was considering taking the company public at a valuation of between $20 billion and $30 billion.
Its valuation has only continued to sink.
Filings - Investor - Fidelity - Investments - Valuation
"Regulatory filings show that early investor Fidelity Investments cut its valuation on We Co. to $18.3 billion in March, well before Wall Street began to scale back its own expectations for an IPO. The predicted valuation is now as low as $15 billion, according to people with knowledge of the matter."
According to Bloomberg the company's valuation has shrunk as investors have gotten cold feet about a planned WeWork IPO. Some of the factors that have spooked investors include: its unusual corporate structure and other governance issues, as well as concerns that the company might never become profitable.
Moreover, investors are skeptical about...
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