The We Company, the parent company of WeWork, is going public, but it’s getting complicated. The company filed the paperwork for its IPO back in December 2018. Then in January, the company rebranded, changing its name to The We Company, and raised $2 billion at $47 billion valuation. Then it filed an addendum to its prospectus in April 2019, and then more paperwork in August.
In all that paperwork was the revelation that The We Company generated $1.54 billion in revenue in the first six months of this year, but had a net loss of more than $904 million. Now comes news that, as it continues its work to be the next tech unicorn to go public, it is rethinking its valuation.
According to a report in the Wall Street Journal, The We Company is considering putting a price tag on its IPO that would value it somewhere in the $20 billion range and potentially on the low end of that mark. For those of us who are bad at math, that’s less than half of the $47 billion value it claimed while raising cash from SoftBank and others earlier this year. Per the Journal, some investors aren’t so keen on the idea of giving The We Company even more money. However, SoftBank is reportedly considering throwing more money into the pot to keep the IPO going, but it may delay that public offering until 2020.
A spokesperson for The We Company declined to comment on the report.