Analysis: WeWork's IPO becoming more unlikely

The survival of WeWork as an independent entity without an IPO is becoming the talk in the corporate world as an IPO for the coworking aggregator becomes more increasingly unlikely.

Even if it manages to go public, The We Company could need yet more capital before it becomes a self-sustaining business according to a new analysis. The news implies that the firm may need to further lever itself or dilute investors in the future.

And with its IPO struggling to launch, WeWork’s financial health looks increasingly tenuous and externally-driven. That’s not a regular position for a company defending a valuation of nearly $50 billion.

IPO Pricing

It’s tough days for The We Company, better known by the name of its coworking brand, WeWork. The highly-valued company has faced several setbacks in its attempts to go public, struggling to find a price that was palatable to itself, its myriad backers, and public-market investors it needs to convince to buy its shares.

The intricate and embarrassing financial dance has led first to an admission that the company’s valuation might be closer to $20 billion than the $47 billion price tag it earned most recently from private investors. Next, WeWork’s potential public valuation was said to slip further, dropping under the $20 billion mark.

Most recently the company’s key backer called for an IPO delay.

SoftBank and its Vision Fund have poured capital into WeWork over the years, driving its valuation — and the implied value of its own stake — north. (SoftBank is raising a second Vision Fund at the moment, making WeWork’s wobbles a double-issue for the company, damaging returns and possibly limiting future investing capital.)

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