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Money WeWork's losses doubled to $1.25 billion last quarter

23:25  14 november  2019
23:25  14 november  2019 Source:   cnn.com

Despite WeWork worries, four reasons co-working won't flame out in Canada

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(Bloomberg) -- WeWork reported a net loss of $ 1 . 25 billion in the third quarter , eclipsing its sales and more than doubling its loss from the same period last year. The quarter coincided with a spending spree in anticipation of the initial public offering, which failed.Revenue in the quarter was 4.

(Bloomberg) -- WeWork reported a net loss of $ 1 . 25 billion in the third quarter , eclipsing its sales and more than doubling its loss from the same period last year. The quarter coincided with a spending spree in anticipation of the initial public offering, which failed.Revenue in the quarter was 4.

a man standing in front of a building© Justin Sullivan/Getty Images

The extent of WeWork's woes is still coming to light.

WeWork reported a net loss of $1.25 billion in the most recently completed quarter, a period of heavy spending during which the co-working company attempted to go public. That compares to a loss of $497 million in the same quarter a year earlier, according to a financial document obtained by CNN Business. The document was first reported on by Bloomberg, which said it was presented to bondholders Wednesday.

The company reported revenue of $934 million for the quarter, up from $482 million a year earlier.

WeWork declined to comment.

SoftBank's second-quarter whiplashed by $8.9 billion loss in Vision Fund

  SoftBank's second-quarter whiplashed by $8.9 billion loss in Vision Fund SoftBank's second-quarter whiplashed by $8.9 billion loss in Vision FundTOKYO (Reuters) - SoftBank Group Corp reported its first quarterly loss in 14 years on Wednesday, with its giant Vision Fund suffering a 970 billion yen ($11.71 billion) loss on falling valuations of top tech bets such as WeWork and Uber.

NEW YORK (Reuters) - The We Company, owner of WeWork , said on Wednesday net losses in the third quarter widened to $ 1 . 25 billion from 7 million a year earlier as its money-losing shared-office business doubled in size with a record number of desks added to its network. Gross profit from the

WeWork says it racked up $ 1 . 25 billion in losses in the third quarter as it geared up for an ultimately scuttled stock market debut WeWork ’ s losses more than doubled between June-September, compared to the same period WeWork added 103 office-sharing locations during the third quarter .

Related video: 5 steps to creating a happy workplace [Provided by Inc.]

The financial update comes as the company attempts to forge a path forward after its disastrous IPO attempt and the ouster of its cofounder and CEO Adam Neumann. Neumann stepped down as CEO in September amid reports that some investors — including its largest, SoftBank — wanted to push him out. Meanwhile, the money-losing company needed a fresh injection of capital. Shortly after that, WeWork pulled its IPO. The situation was so bad that the company reportedly couldn't lay off staffers as anticipated because it couldn't afford to pay severance.

WeWork data shows growth still doubling

  WeWork data shows growth still doubling WeWork data shows growth still doublingWeWork divulged a presentation it gave prospective creditors in October about two weeks before SoftBank agreed to a $9.5 billion bailout to keep the company afloat before cash on hand was expected to run out some time in November.

The rapid expansion of WeWork ’ s office-space empire caused the company’ s losses to more than double in the third quarter , according to a company presentation. WeWork lost $ 1 . 25 billion in the three months that ended in September, up from 7 million in the same period a year earlier

The We Company, owner of WeWork , said on Wednesday net losses in the third quarter widened to $ 1 . 25 billion from 7 million a year earlier as its money-losing shared-office business doubled in size with a record number of desks added to its network.

Last month, SoftBank took majority ownership (80%) of WeWork as part of a deal to pump $5 billion into the company. The Japanese conglomerate also accelerated a $1.5 billion equity investment originally due next year. The package valued WeWork at $8 billion, just a fraction of its peak valuation. Marcelo Claure, Softbank's chief operating officer, was named executive chairman under the deal.

The financial documents showed WeWork had cash on hand of $2 billion as of September 30.

This week, news surfaced that SoftBank is searching for a new chief executive to helm WeWork. When Neumann left, WeWork installed co-president and CFO Artie Minson and vice chairman Sebastian Gunningham as co-CEOs.

Even as he was forced to step down, Neumann received a massive payout, outraging staffers nervously awaiting their own jobs' fates.

In an email to staffers last week obtained by CNN Business, Claure said: "I do want to emphasize the business is secure." He said the company is in the process of finalizing an updated five-year plan. Claure said that plan will be presented to WeWork's board on November 19.

The company has said it will focus on its core co-working business moving forward, looking to sell off many of the startups it acquired over the years, as well as wind down its own business bets, including its school. In his email, Claure said layoffs will be completed in the "next several weeks."

Inside the rise and fall of WeWork .
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