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WeWork faces bankruptcy threat as shares approach zero

Startup News FYI

Startup News FYI · 1y ago

WeWork faces bankruptcy threat as shares approach zero

In a stunning reversal of fortunes, WeWork's shares neared zero on Wednesday as the once-promising startup cautioned about the possibility of bankruptcy. The company, which had been privately valued at an impressive $47 billion, is backed by SoftBank and has struggled since its failed attempt to go public in 2019.

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WeWork founder Adam Neumann trying to buy back company

Economic Times

Economic Times · 1y ago

WeWork founder Adam Neumann trying to buy back company

WeWork founder Adam Neumann is attempting to repurchase the flexible workspace provider after its bankruptcy filing in November. His new real estate company, Flow Global, is pursuing the acquisition of WeWork or its assets, along with offering bankruptcy financing to support its revival, as reported by CNBC citing DealBook.

WeWork considers new bankruptcy loan due to slow progress on rent negotiations

Livemint

Livemint · 1y ago

WeWork considers new bankruptcy loan due to slow progress on rent negotiations

WeWork is considering obtaining a new bankruptcy loan as negotiations with landlords over rent reductions have been progressing slower than anticipated. Landlords expressed their frustration with the company's "hardball tactics" and emphasized that bankruptcy law requires rent payments for properties still in use. WeWork attorney Steven Serajeddini acknowledged the initial failure of negotiations but highlighted the recent success after withholding $33 million in January rent. If the company rejects leases, it must also vacate the properties, according to landlord attorney Ivan Gold. WeWork filed for bankruptcy in November due to significant losses amid the pandemic.

WeWork saga cost Masayoshi Son $11.5 billion and his credibility

Economic Times

Economic Times · 1y ago

WeWork saga cost Masayoshi Son $11.5 billion and his credibility

WeWork's bankruptcy filing highlights the significant flaws in Masayoshi Son's investment approach, impacting his professional reputation. Son's overeagerness to fund WeWork and lift its valuation to $47 billion resulted in deep losses and conflicts of interest. The WeWork debacle, along with the Vision Fund's $32 billion loss, damaged Son's reputation as a savvy investor. Son's determination to back startups at breakneck speed and inflate valuations eventually led to a crash when spending didn't translate into profits. His investing style is unlikely to change, despite the losses.

WeWork to proceed with 1-for-40 reverse stock split

Economic Times

Economic Times · 1y ago

WeWork to proceed with 1-for-40 reverse stock split

WeWork is moving forward with a one-for-forty reverse stock split of its class A and class C common stock, authorized by shareholders. This follows a steep decline in WeWork's shares, which lost nearly 98% of their value this year. The reverse split aims to boost the company's share price, potentially attracting investors and stabilizing its position. WeWork shares had lost almost 98% of its value this year, approaching near-zero earlier in the month, after the company warned it could go bankrupt.

Can Smartworks’ IPO Capitalise On The Growing Flexible Workspace Trend?

Inc42 · 11m ago

Can Smartworks’ IPO Capitalise On The Growing Flexible Workspace Trend?

The flexible workspace market is gaining popularity among startups, small and medium enterprises, and large corporations. WeWork, a prominent player in this space, had initially planned for a high-profile IPO but faced financial troubles and eventually filed for bankruptcy. However, WeWork India continues to thrive, serving over 70,000 members. In contrast, Smartworks, another coworking space provider, has taken a frugal approach to funding and has steadily grown its operational centers and revenue. The flexible workspace sector in India is expected to expand, attracting investment from various players in the real estate industry.

VC firm buying into WeWork India as US parent set to exit

VCCircle

VCCircle · 1y ago

VC firm buying into WeWork India as US parent set to exit

An Indian venture capital firm is acquiring a minority stake in WeWork India, as the US parent company prepares to exit. This comes after WeWork Inc., the US parent, filed for bankruptcy earlier this year. The two-stage transaction will involve the venture capital firm buying the stake and the US parent selling its holding. WeWork India will continue its operations with support from the Indian venture capital firm.

WeWork files for Chapter 11 bankruptcy in New Jersey

Livemint

Livemint · 1y ago

WeWork files for Chapter 11 bankruptcy in New Jersey

Co-working giant WeWork has officially filed for Chapter 11 bankruptcy in New Jersey, according to a report by Bloomberg. The troubled company is expected to submit its bankruptcy petition next week.

WeWork India's operations remain unaffected, as company files for bankruptcy in the US

Economic Times

Economic Times · 1y ago

WeWork India's operations remain unaffected, as company files for bankruptcy in the US

WeWork has filed for bankruptcy in the US and Canada, with a valuation of just $45 million compared to its previous valuation of $47 billion. However, WeWork India stated that its operations will not be affected by this filing, as it operates independently from WeWork Global. WeWork's franchisees worldwide are also not impacted. The company plans to restructure its debts and leases in the US and Canada while continuing its business operations.

WeWork India says business not affected by US bankruptcy

Economic Times

Economic Times · 1y ago

WeWork India says business not affected by US bankruptcy

WeWork India has clarified that its business will not be affected by the recent bankruptcy filing of its global parent company, WeWork. The Indian unit, a separate entity backed by Embassy Group, reassured members and stakeholders that it will continue to operate as usual. WeWork India, which has been running profitably since 2021, closed the previous financial year with revenue of Rs 1,400 crore ($168.99 million). The Chapter 11 filing by WeWork in the US is aimed at restructuring debts and leases in order to improve the company's financial condition.

WeWork seeks permission to begin canceling leases in bankruptcy

Economic Times

Economic Times · 1y ago

WeWork seeks permission to begin canceling leases in bankruptcy

WeWork has filed for bankruptcy and is seeking permission to start canceling leases as it grapples with the fallout from the pandemic. The co-working space provider has been hit hard by the shift to remote work, with many companies no longer needing office space. WeWork is now looking to shed leases and reduce its real estate footprint to cut costs.

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