What’s going on:
With less than $287 million in cash left, WeWork is desperately trying to find additional sources of funding and to restructure its debt, according to The New York Times.
Its main investor, SoftBank, won’t provide any additional money, so the coworking company is negotiating with real estate software firm Yardi to attain funds.
Why it matters:
WeWork is also attempting to lengthen the time frame for paying back its $3 billion in debt. Despite the marked improvement from the Adam Neumann era, the company still lost $700 million in cash last year.
SoftBank once valued the company at $47 billion, yet its valuation has drastically sunk to $830 million.
It is reported that the talks between WeWork and Yardi revolve around giving WeWork the ability to reorganize its debts, as well as providing a financial cushion for the next several years. For at least the past twelve months, WeWork and Yardi have collaborated on various projects.
How it’ll impact the future:
With recent layoffs, stock plummeting, and valuation sinking, WeWork is experiencing some hard times. It’s unclear what the future holds for the company if it continues like this, and whether another company will swoop in to take it over.