WeWork shares halted, news pending
WeWork’s woes could be set to deepen. The co-working titan’s shares have been halted amid reports of a possible bankruptcy filing. IGTV financial analyst @AngelineOng takes a look at WeWork’s rise and fall from grace.
( Video Transcript)
Outlook not good for lockdown darling WeWork
Now, we're also watching out for WeWork 4U. Its shares are halted, and let me just check now to see what is happening, whether anything has broken. And I can confirm that its shares are still halted, pre-market imminent news.
Now, this company, which was once privately valued at $47 billion, and now, well, what a fall from grace, has a market cap of just around $121 million. Prior to today, the company, which went public in 2021, was slapped with quite a few downgrades too. S&P downgrading WeWork to SD on a forbearance agreement, and fixed downgrading WeWork to RD.
Demand dips for flexible workspaces
WeWork, as I mentioned earlier, went public in 2021, and was a darling during lockdown and also when lockdown was over, and pre-lockdown, I might add. But skepticism over its business model, as more companies had a strategic hybrid model in place, meant that WeWork taking long-term leases and renting them for short-term was no longer feasible.
Its shares tanked nearly 50% to a record low sometime last week after media reports that the flexible workspace provider was planning to file for bankruptcy.
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