American real estate firm WeWork’s stock market debut is in doubt after SoftBank, the Japanese investment firm that owns about 30% of the company, has urged the company to drop its flotation plans.
The pressure follows signs that many of the firm’s other investors do not value WeWork as highly as SoftBank did when it invested last year.
SoftBank reportedly valued WeWork at around £38bn but in recent month’s the firm’s worth has fallen below £16bn, as investors question its corporate structure, governance and profitability chances for the future.
Since WeWork was founded in 2010, it has expanded to more than 500 locations in 111 cities across 29 countries. However, the growth has been costly as the firm reportedly lost £1.3bn last year, despite revenue nearly doubling.