WeWork's parent The We Company said Monday it would withdraw its first public offering in a week after removing SoftBank-backed office-sharing startup founder Adam Neumann as chief executive officer.
WeWork's IPO decision is expected to widen significantly after postponing the sale of shares in early September, following the views of stock market investors and the firm damage to Neumann's company as stock losses worsen.
SoftBank, who owns nearly a third of the We Company, invested in startups with a valuation of $ 47 billion in January. But investor skepticism led this earlier this month, considering that the potential IPO valuation was only $ 10 billion earlier this month, Reuters reported.
WeWork co-CEOs Artie Minson and Sebastian Gunningham said Monday, “The CEO decided to postpone the IPO to focus on the core business.
“We have every intention of running WeWork as a public company and look forward to revisiting the public stock market in the future,” Minson and Gunningham said.
We Company vowed to pursue an IPO and complete the sale of shares by the end of the year after Neumann resigned as CEO. However, sources told Reuters last week that the IPO this year will not be completed.