JPMorgan cashed in almost $100 million of its stake in WeWork shortly before the company’s failed attempt to go public.
The banking giant — a lead advisor on WeWork’s botched initial public offering effort — sold its shares last year, soon before the office giant descended into crisis, according to the Telegraph. Typically, investors will wait to cash out until after an IPO in the hope of achieving a higher valuation.
JPMorgan previously sold off a chunk of its holdings in the company in 2017 for slightly more than $50 million after SoftBank invested $4.4 billion in WeWork. That year, former WeWork CEO Adam Neumann sold $361 million worth of shares, the maximum amount.
WeWork has faced an extremely tumultuous road after its failed IPO attempt, laying off thousands of employees and watching its valuation tumble from $47 billion to less than $10 billion. It has also kept its U.S. locations open during the coronavirus pandemic, sparking criticism and straining relationships with some members. [The Telegraph] – Eddie Small