The We Company, better known as WeWork, filed confidentially for an IPO, the company said in a press release on Monday.
The company did not reveal financial information in the filing. However, in a presentation shared with CNBC in March, The We Company said it had a net loss of $1.9 billion on $1.8 billion in revenue in 2018, and a net loss of $933 million on $886 million in revenue in 2017.
WeWork’s business model continues to rely on…
heavy funding from private investors, namely SoftBank, which has poured over $10 billion into the company, including $2 billion this year. WeWork has to plunge cash into real estate in some of the most expensive markets and makes money back over time as companies and individuals pay their rent, or membership.
The We Company joins a growing class of tech firms filing to go public. Lyft, Pinterest, Zoom and PagerDuty have already gone public this year, and Uber and Slack are both preparing for their own IPOs. The We Company’s confidential filing is an amended draft registration statement, according to the release. The company initially filed a draft S-1 confidentially in December, according to a memo from the company’s co-founder Adam Neumann obtained by CNBC.
The firm rebranded from the name “WeWork” earlier this year in order to encompass the expanding scope of its plans. WeWork now encompasses the co-working space business with which the firm got its start. The We Company’s other business units include WeLive, which provides flexible residential offerings and WeGrow, its education unit.
In the memo to employees Neumann told staff, “We have regularly focused on how to take our business to the next level in every aspect. As part of keeping all options open, we confidentially filed a draft S-1 registration statement with the Securities and Exchange Commission in December. After a lot of thought, last week we decided to file the first amendment to our submission, which is a step towards allowing us to decide to become a public company.”
Here is Neumann’s memo to employees…
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