The Capital Markets (We)Work

In a healthy financial system, some IPOs will fail

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

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 C1,105.62 USD-4.92
Facebook Inc A159.60 USD-4.32
Morningstar Inc115.77 USD-0.41
Netflix Inc364.08 USD-3.04
SoftBank Group Corp34.52 USD-3.25

About Author

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