Does WeWork spell the end of the unicorns? November 4, 2019 WeWork has undergone a dramatic fall from grace recently. Just two months ago the office rental start-up was expecting to offer shares to the public at a total business valuation of $47 billion. This soon halved and then investors rapidly pulled their support for an initial public offering (IPO) above $12 billion. The IPO was [...]
Has WeWork destroyed SoftBank’s credibility? November 13, 2019 By John Colley at Warwick Business School Why is Japanese investment firm SoftBank investing a further $8 billion into WeWork, even though the office rental company is now valued at just $8 billion, and buying out founder Adam Neumann at a further cost of $1.7 billion? Forgetting SoftBank’s previous sunk investments in WeWork – which [...]
Revolut could be launching its own crypto token October 6, 2021 The ultra fast payments service Revolut could be launching its own crypto token according to sources familiar with the matter. The company offers banking services through its flagship mobile app and already allows customers to buy and sell crypto currencies. The UK’s biggest FinTech company, valued at $33bn, wants to take things a step further [...]
Tech industry jargon is full of hot air and keeps public valuations sky-high October 15, 2021 It was the presentation that cost £1.85bn. On Tuesday morning, Matt Moulding, the CEO and founder of The Hut Group, addressed his shareholders, attempting to reverse a precipitous slide in the company’s share price. It didn’t go well. Just hours after his presentation ended, the firm had lost another third of its value. The Hut [...]
MUFG likely to deny Softbank loan over Wework bailout November 21, 2019 Mitsubishi UFJ Financial Group (MUFG), Japan’s largest bank, is reportedly likely to withhold additional loans from Softbank to finance the conglomerate’s $9.5bn (£7.3bn) rescue package for struggling office space firm Wework. Softbank has asked for around ¥300bn (£2.1bn) additional loans for Japan’s three megabanks – MUFG, Mizuho Financial Group and Sumitomo Mitsui Financial Group – [...]
Wework creates committee to mull financial lifeline October 17, 2019 The owner of Wework has reportedly set up a committee to decide whether it will accept a financial lifeline from its largest shareholder and main lender. In a move that will likely decide the fate of the embattled firm’s future, the We Company has put together a special board committee to consider proposals for a [...]
New York State Attorney General reportedly investigating Wework November 19, 2019 Embattled office space firm Wework is reportedly being investigated by the New York State Attorney General (NYAG). The issues NYAG is examining include whether Wework founder and former chief executive Adam Neumann indulged in self-dealing to enrich himself, Reuters reported. Read more: Wework losses ballooned to $1.3bn in quarter before failed float The investigation comes [...]
Wework could be worth ‘zero’, says Bill Ackman October 30, 2019 Influential investor Bill Ackman said he thinks there is a risk of Softbank having to write off the entirety of its multi-billion-dollar investment in Wework. “I think WeWork has a pretty high probability of being a zero for the equity, as well as for the debt,” Ackman told the Robin Hood investor conference in New [...]
Wework secures $1.75bn from Goldman Sachs fundraising push December 17, 2019 Wework has reportedly secured $1.75bn (£1.33bn) from a fundraising push led by banking giant Goldman Sachs. The embattled flexible office company has obtained the funding in a deal that will free up around £800m in cash, according to Bloomberg. Softbank has vowed to raise $5bn in debt financing as it seeks to rescue the loss-making [...]
City Moves: Who’s switching jobs in the Square Mile this week? November 19, 2021 City A.M.’s Millie Turner provides a roundup of the most important hires and job moves across the City, every morning. Email citymoves@cityam.com to be featured. C. Hoare & Co. Private bank C. Hoare & Co. has posted a former JP Morgan executive to its board as a non-executive director. India Gary-Martin brings some 25 years of experience to the role, from across [...]