WeWork Plans to go Public
They need cash. Lots and lots of cash.
May 3, 2019
If you've visited or lived in a city big enough to have public transportation and a Trader Joe's, then you've probably seen a WeWork. The company's focus is on buying and leasing office space that it renovates and rents out to other companies and people who prefer to work in a coworking space.
The problem is that with its fast growth rate, WeWork is spending way more than it's making right now. Of course, in the business world you have to spend to grow, but WeWork is spending at a rate very few (and I do mean very few) private investors can keep up with.
In 2018, the company ran through $2.3 billion in cash and this number is projected to increase to $4 billion this year. According to the WSJ, analysts said WeWork wouldn't start making a profit until the year 2026, and it will need over $19 billion in cash to survive until then (assuming it keeps growing at the same rate).
That's the benefit of becoming a public company; you have access to way more money because of the ability to sell company shares.
WeWork is currently valued at $47 billion.