WeWork, a leading office-sharing start-up, announced it will withdraw its S-1 filing as it aims to postpone its initial public offering (IPO).
WeWork co-founder Adam Neumann last week announced he would step down as CEO and give up some of his voting power.
“We have decided to postpone our IPO to focus on our core business, the fundamentals of which remain strong,” WeWork co-CEOs Artie Minson and Sebastian Gunningham said in a statement on Monday.
SoftBank, which owns nearly a third of We Company, invested in the startup at a $47 billion valuation in January. But investor skepticism forced it to consider a potential IPO valuation of as low as $10 billion earlier this month, Reuters reported.
WeWork’s new CEOs have taken steps to cut costs at the company, including selling Neumann’s private jet, putting side businesses up for sale and considering layoffs of up to one-third of the company’s workers, or roughly 5,000 employees.
We Company had cash and cash equivalents of roughly $2.5 billion as of June 30. While revenue doubled to nearly $1.8 billion in 2018, its losses also more than doubled to $1.9 billion, according to the IPO prospectus it filed earlier in September.
Uber Technologies and Lyft also went public earlier this year with high expectations, but their shares have dropped since then as investor fret over steep losses racked up by the two ride-hailing companies.