Back To Daily Digest

Only JPMorgan Can Fill WeWork’s $47 Billion Hole

After JPMorgan Chase & Co. reports its earnings this week, many will be eyeing what the bank plans do with WeWork after the coworking firm’s disastrous path to an IPO. Click To Tweet

Currently, WeWork is seeking more cash flow, or risks running out of money as soon as next month. Right now, the firm is weighing whether it should opt for a $5 billion financing package led by JPMorgan or selling a controlling stake to its biggest backer SoftBank. Reports say that the company prefers the former.

The deal would include at least $2 billion with a 15% coupon and would be structured as payment-in-kind notes, allowing the firm to pay interest through the issuance of additional bonds. Essentially, this gives WeWork a chance to push back repayments.

The Latest News
Delivered To Your Inbox

JPMorgan’s CEO Jamie Dimon has made the extra effort to stay by WeWork’s side, investing billions into the coworking firm, as well as winning other big IPO deals by pitching the bank as a start-to-finish operation.

Still, WeWork’s losses could directly impact the bank as has been proven by others already. For example, potential losses from WeWork have led analysts to cut earnings estimates for Goldman Sachs, who is also expected to report its earnings this week.

Despite the potential negative effect WeWork could have on JPMorgan, it is not likely to be significant enough to impact the megabank. It may just be the hero needed to save the coworking company from imminent doom. 

ABOUT Aayat Ali
Aayat Ali

Aayat is an editor for the Daily Digest based out of Kentucky. She has worked with local coworking spaces since August of 2017 and enjoys taking her firsthand knowledge to write about the fascinating, constantly evolving world of flexible workspaces. Feel free to reach out to her at [email protected] View all posts by Aayat Ali

Latest on Daily Digest

The Wing Members Demand Big Changes

Trends To Shape The Future Of The Workspace

Flexible Offices Could Be A Solution For Financial Services Firms

Hybrid Work Weeks Are The Future

Creating A Safe Workplace For Employees

LA Landlords Are Concerned About The Coming Months

De-densification Is The Future Of The Workplace

Remote Work Has Enhanced Digital Transformation

Leasing Activity For 2021 Looking Optimistic



  • Facebook
  • Twitter
  • LinkedIn
  • RSS
  • instagram
  • pinterest