SoftBank Is Reportedly Asking WeWork to Shelve its IPO For This Reason

SoftBank, which is the biggest outside investor of co-working company WeWork, is urging the startup to shelve its IPO according to a Financial Times report.

The report has said that WeWork, formally called The We Co., has its advisors still evaluating investor appetite for an IPO valuation between $15 billion and $20 billion.

The company had been in discussions with SoftBank and other shareholders and advisors about whether or not to move ahead with its IPO said CNBD this past Friday.

The We Co. had a valuation of $47 billion when SoftBank invested $2 billion into the company in January.
SoftBank and its Saudi-backed Vision Fund have invested over $10 billion into the company.

According to a Wall Street Journal report,, SoftBank is concerned that if WeWork goes public at a valuation much lower than its private-market valuation, it might hurt the firm’s ability to raise its second Vision Fund.

A WeWork spokesperson told Business Insider: “The company is in a quiet period and will politely decline to comment.”