WeWork, also known as WeWork Companies Inc., is a United States provider of shared workspaces for tech startups, as well as a provider of services for businesses and entrepreneurial-minded individuals alike.
Founded in 2010, the New York City company has grown into having some 5,000 employees in total.
Earlier today, on Wednesday, Aug. 14, 2019, WeWork pumped out a prospectus for its soon-to-come initial public offer. As outlined by the United States Securities and Exchange Commission, there will be a 20-day period in which potential buyers of the shares can ask for certain types of information from WeWork, though the underwriting spread and initial offering price aren’t going to come out until the end of the three-week period.
Potential investors grimaced at the news about WeWork when it was released, as the company had reported a whopping $900 million loss in the previous six months of operations.
Earlier this year, after SoftBank – the financial institution had already put forth more funding than any other financial backer but still put forward more – gave another $2 billion to WeWork, which has since been rebranded as We Company, it was valued at $47 billion.
The IPO prospectus indicated that the We Company had managed to haul in total revenues over the first two quarters of 2019 to the tune of $1.54 billion, though it still managed to lose nearly one billion in just one-half of a year.
Although a billion dollars is a lot of money, this isn’t too serious when it comes to the welfare of We Company. Take, for example, when Uber went public earlier this year, having reported a total loss of $5 billion in the second quarter of 2019 alone. The tech giant’s IPO went very well earlier this year, it’s worth noting.
WeWork is proud to have grown so much over the past year, as its total membership has grown up more than 90 percent from the year prior as of June 30, surmounting its way up to a whopping 527,000 happy members.
WE will be the ticker name for the We Company and its shares will be underwritten by a handful of financial institutions, though the two largest of which are Goldman Sachs and J.P. Morgan Chase.
Right now, according to the filing, WeWork has a whopping $17.9 billion in terms of long-term obligations that it is owed from its customers’ leases.