Re:WeWork says will file to withdraw IPO
by prostoalex on Monday September 30, 2019 @01:21PM
(#21117605)
Re:WeWork says will file to withdraw IPO
by greenyoda on Monday September 30, 2019 @03:01PM
(#21118580)
That article says:
>The [ratchet] provision could grant existing shareholders $200 million to $500 million worth of additional shares, most of which would go to SoftBank, Kennedy said. For example, if WeWork’s market cap came in at less than $14.5 billion post-IPO, the total value of additional shares issued to SoftBank under the provision would be more than $400 million.
$400 million doesn't seem to be much of a compensation for losing billions of dollars in investments.
And that assumes that the company will IPO before it goes bankrupt (e.g., from investors pulling the plug on any future investments to cut their losses).
Re:WeWork says will file to withdraw IPO
by prostoalex on Monday September 30, 2019 @04:49PM
(#21119544)
Yeah, it doesn't de-risk the investment as far as bankruptcy, but SoftBank's exposure is $10.5 bln, according to https://www.nytimes.com/2019/01/07/business/softbank-wework.... so any valuation above $10 bln would be a break-even for them.
The major thing is usually first dibs if the company sells for a lot less than the later valuations. In this case that doesn’t seem likely to happen with Softbank getting back most of their investment