WeWork to face off US SEC probe on possible rule violation


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WeWork to face off US SEC probe on possible rule violation

WeWork, the office space sharing start-up, owned by a US real estate major The We Company and a controlling stake of which was recently purchased by Japanese Investment Conglomerate SoftBank in a last-ditch attempt to save its havoc-scale investment on WeWork and to add its stakes in SoftBank’s second vision fund, had been facing off steep scrutiny from the US SEC (Security and Exchange Commission) on whether it had violated any rule during its suspension of initial public offering on late-September, a Bloomberg report published on Friday, the 15th of November 2019, had unveiled citing at least two people directly briefed over the subject-matter.

Nonetheless, according to Bloomberg’s Friday’s (November 15th) report, the US SEC (Securities and Exchange Commission) probe might have been in an early stage and it would unlikely to lead any potential accusation of wrongdoing, however, the report also added the sources could not determine whether the transactions or WeWork’s controversial decision to step off of its initial public offering had stoked the US SEC review.

Meanwhile, the sources had also added on condition of anonymity that the US financial watchdogs were looking on to WeWork’s financial framework, which was met with a sharp plunge in valuation to $10 billion during mid-September from a $47 valuation during a fundraising attempt on February this year, after media headlines had reported potential conflict of interests between the WeWork management board and the shared office space provider’s potential investors, Friday’s (November 15th) Bloomberg report revealed.