WeWork is gearing up for its first initial public offering with a $47 billion valuation on its shoulders, which could make it one of the most valuable IPOs in history. But some are wondering whether the nine-year-old company’s massive valuation is well founded as it has yet to make a profit.
The valuation seems to derive from private investors, like SoftBank, who have bought into successive rounds and drove up the valuation.
Other major companies have recently had disappointing IPOs such as Uber and Lyft, and some analysts are expecting a similar result for the coworking firm.