The Capital Markets (We)Work

In a healthy financial system, some IPOs will fail

John Rekenthaler, CFA 17 October, 2019 | 1:51AM
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WeWork sign

Shaky figures

Founded in 2010, the privately held company WeWork has received more than US$10 billion in financing. Its January 2019 investment round, from Japanese giant Softbank (9434) (which also bought into Morningstar (MORN) back in the day), valued the company at US$47 billion. Several months later, WeWork filed with the SEC for an initial public offering. That planned IPO collapsed, spectacularly. Many observers now predict the company's bankruptcy.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar Rating
Alphabet Inc Class C2,341.66 USD-2.38Rating
Facebook Inc A305.97 USD-4.11Rating
Morningstar Inc253.32 USD-3.35
Netflix Inc486.69 USD-3.40Rating
SoftBank Group Corp92.80 USD0.29

About Author

John Rekenthaler, CFA  John Rekenthaler is Vice President of Research for Morningstar.

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