A new Breakingviews e-book recaps the rise and fall of The We Company. Time will tell whether the firm really managed to change the future of work or became the poster child for the private-market boom and bust.
WeWork is getting more complex as it readies for an initial public offering, but its central problem remains simple. The shared-office firm has set up a unit to buy buildings it can then let out to its customers. It’s a way to hedge against rising lease costs and cash in on WeWork’s supposed halo effect. If tenants prove fickle or demand subsidies, though, the benefit of owning property only goes so far.
Its new unit, called ARK, will roll up existing investments in real estate, including those by private-equity firm Rhone and WeWork co-founder Adam Neumann, and add an injection of $1 billion from a unit of Canadian investment firm Caisse de depot et placement du Quebec. The structure is intricate, with separate funds and special purpose vehicles, according to a person familiar with the situation.
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
WeWork IPO failure a critical signal for markets: Morgan StanleyWeWork's failure to go public is a critical turning point for markets that ...
Read more »
WeWork property defaults may be next after failed IPO, says mega-developer Don PeeblesPeebles says, 'Anyone looking at a building that has got significant WeWork occupancy has got to be very concerned.'
Read more »
WeWork is reportedly considering selling its stake in women's coworking space The WingWeWork reported in its IPO filing in August that it owns 23% of The Wing — that percentage was worth over $58.8 million as of June 2019.
Read more »
How WeWork could impact the real estate marketCNBC's Robert Frank reports from one building that is co-owned by former WeWork CEO Adam Neumann. The building is up for sale and could give a good idea of the risk it could pose to the real estate market.
Read more »
WeWork pulls IPO filingWeWork has announced it will withdraw its S-1 filing as it seeks to postpone its highly anticipated initial public offering.
Read more »
Fitch downgrades WeWork after aborted IPO leaves financing holeGlobal credit rating agency Fitch Ratings on Tuesday downgraded WeWork's cr...
Read more »