5 ms·
And WeWork is worth 40B according to the big banks.
by freejulian85 7y ago
And WeWork is worth 40B according to the big banks.
- ifthenelseend 7y agotwo weeks later they said it's only worth ~ 10B
- ztratar 7y agoSoftbank != "the big banks" The public markets did what they were supposed to do to WeWork.
- deleted 7y ago[deleted]
- olivermarks 7y agoTo be fair it was the weWork ipo roadshow banks that came up with that fantastic number
- beering 7y agoMatt Levine made the point that to get chosen as one of the IPO banks, you had to pitch to WeWork that you could get them a good-yet-plausible valuation. I.e., take what their last (private) valuation was, and bump it up by a decent amount. Once you're selected, of course, then reality can take over.
- rrss 7y agoGoldman Sachs = the big banks IIRC Goldman valued WeWork at $60B
- rurp 7y agoGoldman valued WeWork at $60B, as part of their sales pitch to lead the IPO. The context makes all the difference since the point of that valuation was to aid a sales pitch, not be an accurate assessment.
- racino84 7y agoThis is incorrect. They pitched this at $60b but couldn't get a bookbuild at that price which never happens. The key distinction with pitching to lead to the IPO is they sought to find investors (as opposed to wework management) at this price too, but not enough people bit to fill the raise.
- thrower123 7y agoSoftbank and WeWork reminds me painfully of the episode of Entourage I watched last night, where the boys are pitching their as-yet unseen prestige film at Cannes. Hyped to the extreme, on the verge of pulling a deal to make a boatload of money, but on closer inspection it's a huge stinker that falls apart disastrously.