WeWork, the start-up that defined the modern coworking trend, has a $47 billion valuation that could be pegged to smoke and mirrors.
Softbank’s $100 billion Vision Fund has become the biggest backer of WeWork, investing $10.4 billion in it so far.
Four billion dollars from Softbank last year boosted WeWork into $40 billion territory, and the funding round in January brought it to $47 billion.
J.P. Morgan Chase recently committed $800 million to a $6 billion debt package that depends on WeWork’s upcoming initial public offering raising at least $3 billion, Bloomberg reported last week.
Alexander Snyder, a senior analyst at CenterSquare Investment Management, called the valuation “a bit pie in the skyish; $47 billion assumes that WeWork is not only going to be the next Marriott, but [it] already is.”
Uber just reported a $5.2 billion loss during its second quarter, roughly $3.9 billion of which was stock-based compensation that Uber paid to its employees after the IPO. The ride sharing company also just posted its slowest quarterly growth rate ever, according to The New York Times, with revenue growing to $3.1 billion, up 14 percent from last year.
” He predicted that the IPO price “won’t be anywhere near $47 billion in implied valuation.