On Monday, We Company the parent company of WeWork had withdrawn the plan to take the company that leases office spaces to go public after its CEO was ousted less than a week ago.
The new co-chief executive officers of WeWork Sebastian Gunningham and Artie Minson said through a statement that they have taken a decision to postpone the IPO in order to focus on the core business of the company and also added that the fundamentals of the company still remain strong.
The company is New York City’s biggest tenant and has made a name for itself by leasing, subleasing and renovating office spaces in all the cities across the nation. The valuation of the company was once at a high of $47 billion. However, ever since it has filed the documents to go public on the 14th of August, it has been facing questions about the financial losses and also its corporate governance. Before it pulled out WeWork had been considering an Initial Public Offering which would be below $20 billion.
The founder of WeWork Adam Neumann had stepped down last week as the CEO. The company is now cutting costs as it is planning to make its balance sheet shore up.
We Company has also an eclectic portfolio of many side businesses which are meant to cater to its member’s well beings.
These ventures are including a fitness company known as “Rise by We”, “WeGrow” which is a school for children and “WeLive” which is a co-living renting company.
As of now WeWork does have cash though. At the end of the month of June, it had $2.5 billion with it. However it is still losing more money than it is earning as the yearly losses are amounting to $5,200 for every customer.