Gillian Tan and Ellen Huet, Bloomberg News
WeWork formally withdrew the prospectus for its initial public offering, capping a botched fundraising effort that cost the top executive his job. The defeat places urgency on WeWork to find new sources of capital to keep the lights on.
The New York-based company had a deadline for completing a successful stock listing by the end of the year in order to secure a US$6 billion loan, in addition to at least US$3 billion in capital that WeWork would have raised in the IPO.
With WeWork set to run out of cash as soon as next spring at the current pace of spending, the two co-chief executive officers, who replaced co-founder Adam Neumann last week, are weighing possible staff cuts and divestitures.