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YES Bank postpones decision on Braich's $1.2 billion offer

The bank continues to evaluate other potential investors to raise capital up to $2 billion.

WeWork

Dec 10, 2019, 07.54 PM IST

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WEWORK

Goldman jumps into WeWork cleanup with debt-financing plan

WeWork secured a $9.5 billion rescue package from SoftBank in October, a deal that will hand 80% of the company to the Japanese conglomerate after a tumultuous few months that saw WeWork turn from one of the most valuable startups to a cautionary tale.

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  • Oyo, Ola, Freshworks, Flipkart and Paytm are mong leading home-grown tech ventures that have brought in industry veterans to address compliance and governance issues.

    One of the most prominent VC firms in Silicon Valley, Accel said it will continue to scout for early-stage deals across consumer internet, enterprise, financial services, healthcare, and Software as a Services (SaaS) startups. The Bengaluru-based Accel India’s $450 million fund saw 70% of its investments in the range of $2 million or less.

    The depleting market value of global startups has raised alarm bells about loss-making ventures and their business models. The focus, therefore, is growth with profitability, said founders and investors who attended The Economic Times Awards for Corporate Excellence, 2019.

    WeWork Chairman Marcelo Claure has left a bad taste in the mouth.

    The findings of the survey show that 71 per cent strongly believe that AI will fundamentally change the way we live and work during the next decade, and that an overwhelming 96 per cent believe those changes will be positive. 44 per cent said that their roles have already been impacted by AI.

    The Vision Fund put $250 million into Oyo in 2017 and led a $1 billion funding round last year, which pushed the Indian company’s valuation to $5 billion. Son encouraged Agarwal to expand into markets such as China and the U.S. and to buy properties, including the Hooters Casino in Las Vegas for $135 million.

    After the company’s valuation plummeted from $47 billion to about $8 billion, WeWork is seeking to cut costs and show a path to profitability in order to potentially attempt an IPO again next year. That path includes selling assets and cutting jobs.

    The rise in total expenses comes at a time when the company has been expanding aggressively into overseas markets, particularly in China, where it has committed huge amount of capital, along with the US and the UK.

    According to a source, WeWork would lay off 2,000 to 2,500 employees and an additional 1,000 employees will leave as WeWork sells or closes down non-core businesses. Further, roughly 1,000 building maintenance employees will be transferred to an outside contractor

    The discussions at SoftBank center around shrinking a $3 billion tender offer for WeWork shares owned by founders, employees and investors, according to people with knowledge of the talks. Such a move would be designed, at least in part, to limit the amount paid to co-founder Adam Neumann, said the people, who requested anonymity because the matter is private.

    Ultimate control of the company now rests with SoftBank and WeWork's new Executive Chairman Marcelo Claure. Claure had told employees in an email on Monday that job-cutting will start "in earnest" this week in the United States, saying WeWork was "going to eliminate and scale back certain functions and responsibilities."

    This takes the total funds raised by the San Francisco and Bengaluru-based company to $27.5 million.

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