Euronews is no longer accessible on Internet Explorer. This browser is not updated by Microsoft and does not support the last technical evolutions. We encourage you to use another browser, such as Edge, Safari, Google Chrome or Mozilla Firefox.
BREAKING NEWS

SoftBank urges WeWork to shelve IPO over valuation concerns - FT

SoftBank urges WeWork to shelve IPO over valuation concerns - FT
FILE PHOTO: The WeWork logo is displayed on the entrance of a co-working space in New York City, New York U.S., January 8, 2019. REUTERS/Brendan McDermid -
Copyright
BRENDAN MCDERMID(Reuters)
Euronews logo
Text size Aa Aa

(Reuters) – SoftBank Group <9984.T>, a top shareholder in the holding company of U.S. office-sharing startup WeWork, is urging it to shelve a planned IPO on concerns over the valuation that can be achieved in a listing, the Financial Times reported on Monday.

A SoftBank spokeswoman declined to comment on the report, which cited sources familiar with the matter.

Investor scepticism has already forced money-losing The We Company to weigh slashing its IPO valuation to a little more than $20 billion, sources told Reuters last week, following weak initial trading at other startups including SoftBank-backed Uber Technologies Inc <UBER.N>.

While SoftBank and its $100 billion Vision Fund emphasise their long term investing credentials, founder and CEO Masayoshi Son has set out an ambitious IPO pipeline for its tech investments, spanning ride-hailing, fintech and health startups.

Putting the IPO of We Company on hold would disrupt that schedule at a time when SoftBank is seeking funds from investors for a second Vision Fund.

SoftBank made a follow-up investment in We Company, one of its biggest tech bets, at a $47 billion valuation earlier this year – a number widely treated with scepticism by analysts.

(Reporting by Bharath Manjesh in Bengaluru and Sam Nussey in Tokyo; Editing by Maju Samuel and Muralikumar Anantharaman)

euronews provides breaking news articles from reuters as a service to its readers, but does not edit the articles it publishes. Articles appear on euronews.com for a limited time.