WeWork under pressure as losses soar to $1.25B

The third-quarter net loss is up from $497 million a year ago

National /
Nov.November 14, 2019 09:25 AM
WeWork co-CEOs Artie Minson and Sebastian Gunningham

WeWork co-CEOs Artie Minson and Sebastian Gunningham

WeWork lost $1.25 billion in the third quarter — up from $497 million in the same time period last year.

The parent of the troubled-office startup also reported a surge in revenue to $934 million in the months following Sept. 30, the Wall Street Journal reports, citing a report to debtholders this week.

The $1.25 billion loss falls in contrast to the $638 million loss posted in the second quarter. The company blamed the third-quarter figures on rising expenses outpacing growth.

The startup’s mounting losses had caused concern among potential investors when the company attempted to go public this fall. The ill-fated plan led to the company’s valuation dropping from $47 billion to about $8 billion, and the ousting of founder and CEO Adam Neumann.

Since Neumann’s departure, the company has been scrambling to get back on track. It is reportedly in talks with T-Mobile US Inc. chief executive John Legere about taking over the position. [WSJ] — Sylvia Varnham O’Regan


Related Articles

arrow_forward_ios
Wendy Silverstein (Credit: Getty Images)

Wendy Silverstein, co-head of WeWork’s real-estate fund, is out

Wendy Silverstein, co-head of WeWork’s real-estate fund, is out
WeWork CEO Adam Neumann (Credit: Getty Images and iStock)

WeWork’s side businesses are fizzling

WeWork’s side businesses are fizzling
Sarah Pontius (Credit: Union College)

Another head rolls at WeWork

Another head rolls at WeWork
Cindat Capital Management CEO Greg Peng and Hersha Hospitality Trust CEO Jay Shah with 51 Nassau Street (Google Maps)

7 Manhattan hotels head to auction block

7 Manhattan hotels head to auction block
Clockwise from top left: 48 Bedford Avenue in Williamsburg; 7601 4th Avenue in Bay Ridge; 55-25 58th Street in Maspeth; 42, 44 and 46 21st Street in Flatiron; 59-20 Van Doren Street in Corona (Photos via StreetEasy; Google Maps)

Mid-market investment sales off to strong start in 2021

Mid-market investment sales off to strong start in 2021
(Getty, iStock)

Flooding caused by climate change leads to mounting real estate costs

Flooding caused by climate change leads to mounting real estate costs
From left: Lionheart's Ophir Sternberg, Fifth Wall's Brendan Wallace, Chamath Palihapitiya, Supernova Partners' Spencer Rascoff and Proptech Acquisition II's Tom Hennessy (Getty, LinkedIn, iStock)

These blank-check firms are courting proptech deals

These blank-check firms are courting proptech deals
Mickey Rabina and 520 Fifth Ave. (Rabina, Ceruzzi Properties)

Rabina files plans for 70-story tower at beleaguered Fifth Ave site

Rabina files plans for 70-story tower at beleaguered Fifth Ave site
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...