The troubles for We Company and its main business WeWork are mounting as the Financial Times is reporting that the company’s main backer, Softbank, is pushing for the company to put its troubled public offering on hold.
Citing sources familiar with the company and its main investor, the Financial Times said that the cool reception We Company has received from public market investors.
The company needs to raise at least $3 billion in the public offering to trigger a $6 billion in debt financing from the very bankers architecting its IPO. If it fails to cross that $3 billion threshold and not have access to that debt, it would be a significant roadblock to the We Company’s global expansion plans. And those plans are vital to the company’s success, since it’s the growth story that the company is selling to public market investors.
Over the weekend, the Wall Street Journal reported that the company was thinking about reducing the amount it would seek in a public offering below the $20 billion figure that had been previously reported.