The fallout from two fatal crashes of Boeing 737 Max planes has ensnared the manufacturer's most-loyal customer: Southwest Airlines. The carrier has canceled thousands of...Airlinesread more
The Fed is expected to cut rates Wednesday, but it is unlikely to tell markets what they want to hear on future rate cuts.Market Insiderread more
Stocks rose slightly on Tuesday, but gains were capped as the Federal Reserve kicked off a two-day monetary policy meeting.US Marketsread more
Pelosi said Trump should not have tried to address China's trade practices in a way that opened Americans up to financial pain.Politicsread more
Brent crude oil jumped the most in history in the previous session after attacks on Saudi's oil industry disrupted the kingdom's production.Marketsread more
In the survey, conducted after the third in the Democratic Party's series of debate, the former vice president draws 31% compared to 25% for the Massachusetts senator. At 14%,...2020 Electionsread more
E-cigarette maker Juul Labs Inc.'s sales have been halted on two websites in China, just days after it launched in the world's biggest tobacco market.Biotech and Pharmaceuticalsread more
Investors might be wary that gasoline prices will continue to rise, and are looking to take back profits by selling off shares.Retailread more
The Trump administration move on California's auto emissions standards would likely set up a fight between the White House and the state.Politicsread more
"I feel really confident that defense-minded CEOs, when they are on defense, they're going to come to" flexible offices and away from traditional leases, Knotel CEO Amol Sarva...Commercial Real Estateread more
Fanatics has hired Michener Chandlee, Nike's corporate audit and chief risk officer, to become its chief financial officer, succeeding Lauren Cooks Levitan, CNBC has learned.Retailread more
(Adds detail on IPO, reports on meeting between CEO and SoftBank, Breakingviews and other links)
Sept 5 (Reuters) - WeWork owner The We Company is considering slashing the valuation it will seek in an initial public offering (IPO) at a little over $20 billion, less than half the $47 billion valuation it achieved in a private fundraising round in January, people familiar with the matter said on Thursday.
The We Company's deliberations illustrate how growing investor skepticism over the U.S. office space sharing start-up's lack of a roadmap to profitability, and its co-founder Adam Neumann's firm grip on its governance, are weighing on its IPO prospects.
A dramatic drop in the We Company's valuation could also prove to be a seminal moment for the valuation expectations of Silicon Valley unicorns. Other high-profile IPOs this year, such as those of ride-hailing companies Uber Technologies Inc and Lyft Inc, have fared poorly amid investor skepticism over their lack of a concrete plan to profitability.
In May, Uber completed its IPO at a valuation of $82.4 billion, well below the $120 billion bankers had told the company it could be worth in 2018. It still fared better than We Company stands to, given that Uber's IPO valuation was higher than its most recent valuation of $76 billion in the private fundraising market.
The We Company has not yet launched its IPO road show to formally solicit feedback from investors. It may begin this process as early as Monday, according to one person familiar with the matter.
The sources cautioned that no decision on the valuation has been taken and asked not to be identified because the deliberations are confidential. The We Company declined to comment. The Wall Street Journal reported earlier on Thursday that the We Company was considering an IPO valuation of around $20 billion.
The We Company rents out workspace to clients under short-term contracts, even though it pays rent for them under long-term leases.
The New York-based company lost more than $900 million in the first half of 2019, up 25% from a year earlier, even as its revenue doubled to $1.54 billion, as it burned through cash to invest in growth.
The mounting losses and concerns over how its business model would survive an economic downturn has raised skepticism from investors about the IPO.
Complicating matters further, the company is also looking to go public against a turbulent market backdrop, with the U.S. trade war with China making for the worst August for U.S. stocks in four years.
WeWork, which was rebranded We Company earlier this year, is backed by Japan's SoftBank Group Corp, which has invested or committed to invest $10.65 billion since 2017.
Neumann recently met with SoftBank CEO Masayoshi Son to discuss SoftBank making an anchor investment in the IPO to support demand, or making a further private investment in We Company in order to postpone the IPO, according to the Wall Street Journal.
The We Company has also faced a criticism from some investors over its extensive and unusual ties with Neumann, including him being a landlord to the company on some properties, and initial plans to go public with an all-male board.
The company on Wednesday took some steps to address these concerns by adding a woman, Frances Frei, to its board and announcing that its CEO would return a $5.9 million payment for use of the trademarked word "We."
The We Company has not given a time frame for becoming profitable.
J.P. Morgan Securities and Goldman Sachs are among a nine-member underwriting team for the IPO.
(Reporting by Bharath Manjesh in Bengaluru and Joshua Franklin in New York; Editing by Anil D'Silva, Arun Koyyur and Nick Zieminski)