Wall Street banks are set to grill WeWork on its finances on Wednesday as it pre...
NEW YORK - Wall Street banks are set to grill WeWork on its finances on Wednesday as it prepares to publicly sell stock for the first time, possibly in September, a sale that will create a benchmark for the rapidly expanding flexible office industry.
WeWork, a unit of The We Company, has been bankrolled by more than $10 billion in venture capital, which raises questions of whether the money-losing workspace provider can stand on its own or if it still needs large cash infusions. Analysts will want to know if WeWork has stabilized its operations, whether it is making money, its costs and growth potential, said Alex Snyder, a senior analyst at CenterSquare Investment Management in Philadelphia.
Investors will also have questions about WeWork’s $34 billion in lease obligations, far more than the largest U.S. corporations, after a new accounting standard by the Financial Accounting Standards Board took effect this year. “There’s a lot of desire to handle this IPO in an intelligent way and present a viable business model to the Street and to the analysts because nobody wants WeWork to fail,” said Michael Cohen, president of greater New York City at brokerage Colliers International Group Inc.
Ane Ohm, co-founder and chief executive of LeaseCrunch, a provider of lease accounting software in Milwaukee, said commercial loans often are written so a lease liability would be considered debt.
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 is in talks to acquire start-up SpaceIQ as it pushes into software ahead of IPOAs it gears up to try and convince Wall Street it's a tech company, WeWork is in talks to acquire software start-up SpaceIQ.
Read more »
China's Beijing Kunlun to revisit Grindr IPOChinese gaming company Beijing Kunlun Tech Co Ltd said on Monday it would revive...
Read more »
Livongo's and Health Catalyst's market debuts ended the three-year digital health IPO droughtLivongo and Health Catalyst are publicly traded companies as of Thursday — here are our predictions for which digital health startups could go public next:
Read more »
Beyond Meat is giving insiders a quick way to cash out after 800% post-IPO gainBeyond Meat said on Monday that existing investors will be selling 3 million shares in a secondary offering even though the IPO was less than three months ago.
Read more »
After $6 billion M&A spree, insurer FWD eyes China foray ahead of IPOFast-growing insurer FWD is seeking to launch operations in China ahead of a pub...
Read more »