Hedge fund manager Bill Ackman reportedly thinks WeWork could be worthless, noting Japanese investment giant SoftBank "should have walked away" from it.
"I think WeWork has a pretty high probability of being a zero for the equity, as well as for the debt," Ackman, founder of hedge fund Pershing Square Capital Management, said at the Robin Hood investor conference on Tuesday, according to the Financial Times. "As someone who has put good money after bad, I think this looks like putting good money after bad."
Pershing Square could not be reached for comment.
WeWork recently shelved its plans to go public as the shared-workspace company failed to drum up demand for its IPO. Soon after, the company faced questions about its valuation, which once ranged between $60 billion and $90 billion.
Last week, SoftBank agreed to take an 80% stake in WeWork and announced a $5 billion financing package in an effort to turn around the company.