FOX Business’ Charlie Gasparino shares the latest news surrounding WeWork.
The workspace firm WeWork is set to run out of cash by November and investors are trying to save it from bankruptcy, according to the International Business Times.
Continue Reading Below
Japan’s SoftBank Group Corporation and J.P. Morgan Chase are working in an effort to save WeWork from going under this year by securing emergency funding.
Earlier this month, FOX Business’ Charlie Gasparino reported on financing efforts.
The company expects to lay-off at least 2,000 of its employees as a result of its failed IPO.
SoftBank owns 29 percent of The We Company, parent firm of WeWork, and has invested $10.7 billion in the business.
GET FOX BUSINESS ON THE GO BY CLICKING HERE
Reports say WeWork is partial to a $5 billion financing package led by J.P. Morgan rather than selling a controlling stake to SoftBank.
The startup postponed its IPO in September and its co-founder Adam Neumann resigned as CEO, giving up the majority of his voting control after SoftBank and other shareholders turned on him.
Trading in shares of WeWork in the private over-the-counter (OTC) market has almost ground to a halt, underscoring a loss of investor confidence, according to Reuters.
CLICK HERE TO READ MORE ON FOX BUSINESS
Valuations for the company have ranged from around $7 billion based on the 338.4 million shares on issue, down from the $47 billion it had in January when SoftBank Group Corp last invested. The private market also put a $30 billion value on it in June.
