WeWork’s stock market debut – one of the most hotly anticipated financial events of the year – is in doubt.
SoftBank, the Japanese investment firm that owns about 30% WeWork, has reportedly urged the property company to drop its flotation plans.
The pressure follows signs that outside investors do not value the much-hyped firm as highly as SoftBank did when it invested last year.
SoftBank had valued WeWork at about $47bn (£38bn).
But an upcoming share offering could put the firm’s worth below $20bn, as investors question WeWork’s opaque corporate structure, governance and profitability.
A lower valuation would be a blow to SoftBank, forcing it to write-down its investment. The Financial Times said SoftBank was worried that a low price would affect its other fundraising