Have you read these stories?

Airtel has a surprise for its customers under new plans

The company on December 1 announced new plans under which call and data charges became dearer.

WeWork

Dec 07, 2019, 10.33 PM IST

SEARCHED FOR:

WEWORK

SoftBank will have ‘last laugh’ with WeWork deal, Bernstein says

Chris Lane of Sanford C. Bernstein says WeWork can have a bright future if SoftBank overhauls the biz plan.

Late-stage Indian startups bulk up its boards with independent hands

Oyo, Ola, Freshworks, Flipkart and Paytm are mong leading home-grown tec...

Accel raises $550 million sixth India fund

One of the most prominent VC firms in Silicon Valley, Accel said it will continue to scout for ear...

ET Prime Distribution
  • The depleting market value of global startups has raised alarm bells about loss-making ventures and their business models. The focus, therefore, is growth with profitability, said founders and investors who attended The Economic Times Awards for Corporate Excellence, 2019.

    The findings of the survey show that 71 per cent strongly believe that AI will fundamentally change the way we live and work during the next decade, and that an overwhelming 96 per cent believe those changes will be positive. 44 per cent said that their roles have already been impacted by AI.

    WeWork Chairman Marcelo Claure has left a bad taste in the mouth.

    The Vision Fund put $250 million into Oyo in 2017 and led a $1 billion funding round last year, which pushed the Indian company’s valuation to $5 billion. Son encouraged Agarwal to expand into markets such as China and the U.S. and to buy properties, including the Hooters Casino in Las Vegas for $135 million.

    The rise in total expenses comes at a time when the company has been expanding aggressively into overseas markets, particularly in China, where it has committed huge amount of capital, along with the US and the UK.

    After the company’s valuation plummeted from $47 billion to about $8 billion, WeWork is seeking to cut costs and show a path to profitability in order to potentially attempt an IPO again next year. That path includes selling assets and cutting jobs.

    The discussions at SoftBank center around shrinking a $3 billion tender offer for WeWork shares owned by founders, employees and investors, according to people with knowledge of the talks. Such a move would be designed, at least in part, to limit the amount paid to co-founder Adam Neumann, said the people, who requested anonymity because the matter is private.

    According to a source, WeWork would lay off 2,000 to 2,500 employees and an additional 1,000 employees will leave as WeWork sells or closes down non-core businesses. Further, roughly 1,000 building maintenance employees will be transferred to an outside contractor

    Ultimate control of the company now rests with SoftBank and WeWork's new Executive Chairman Marcelo Claure. Claure had told employees in an email on Monday that job-cutting will start "in earnest" this week in the United States, saying WeWork was "going to eliminate and scale back certain functions and responsibilities."

    This takes the total funds raised by the San Francisco and Bengaluru-based company to $27.5 million.

    When asked about the development, a SoftBank spokesperson said, “We don’t comment on speculation.”

    This is the fifth facility for the company in Pune and will be operational by 2021, the company said. It already has a portfolio of 6,000 seats in the city. According to reports, the second largest single- location deal in this space was struck by WeWorks which picked up 1.22 lakh sqft space in Pune.

Load More...
x

Other useful Links


Copyright © 2019 Bennett, Coleman & Co. Ltd. All rights reserved. For reprint rights: Times Syndication Service