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WeWork Is Still Be Overvalued

Recent reports have revealed that SoftBank has won approval from WeWork’s board to take a controlling stake in the coworking company, giving Adam Neumann $1.7 billion to walk away from the startup he founded. Click To Tweet

This deal will value the once beloved coworking giant at a measly $8 billion — a huge cut from its original $47 billion valuation earlier this year.

So how did a company with a ludacris business model manage to receive such a large valuation in the first place? Was it just another part of a massive scam? Surly SoftBank had an idea of how WeWork would look to the public due to Neumann’s questionable practices and the firm’s financial losses.

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Even at this $8 billion valuation, WeWork is still valued over 5 times more than its rival IWG, who provides flexible workspaces and actually maintains a profit. It seems that this new seemingly “stingy” valuation could still overvalue the company.

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

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