Shared office space provider, WeWork Cos., headquartered in New York, had been seeking an option to raise as many as $3 to $4 billion in debts aimed at reigniting investors’ confidence before going public, a person briefed about the subject-matter had revealed on Sunday, the 7th of July 2019.
In fact, New York-based WeWork’s attempt to raise about $3-$4 billion in debts had been highlighting the market impacts of disappointing public market debuts of Uber Technologies alongside Lyft Inc., which would eventually prompt other loss-making startups to seek similar measures before entering into public market.
Nonetheless, ride-sharing pioneer Uber and its smaller rival Lyft Inc. went public earlier this year, but both ride-hailing enterprises were met with heavy criticisms from investors regarding their steep losses and lack of an exact timeframe to reach profitability.
WeWork’s lossmaking attempts had been facing questions and criticisms about the sustainability of its business structure, based on long-term loan liabilities alongside short-term revenue generation. Besides, if WeWork succeeds in its attempt to raise about $4 billion in debts, it would likely to help the online workspace provider to regain some footings in the eyes of potential investors.
According to the person briefed on the subject-matter, WeWork had been in advanced-stage talks with investment bank JPMorgan Chase & Co. alongside Goldman Sachs.