One of the hottest startups in the market a few months back, WeWork, is currently struggling to even survive in the market. Now, there are a lot of reasons why the startup is in the position that it is in right now. Also, some people blame its former CEO Adam Heumann for this situation and they might be right. But we are here to tell you about the startup is doing next. We previously reported that there are lifelines for WeWork from their major investor, SoftBank, who holds a large amount of stake in the company. However, if WeWork accepts the lifeline from SoftBank then it will have a majority stake and final say in where the company goes from here.
On the other hand, we are aware that a JP Morgan lifeline is also available for WeWork if they decide to take it but there is some risk involved in that deal as well. So it is obvious that the decision to accept any of those lifelines would be tricky for WeWork owner We Company. For this reason, Reuters has exclusively reported that We Company has formed a committee which will decide on financing lifeline from JP Morgan or SoftBank.
As per the report, WeWork “could run out of cash as early as November unless it secures new financing”. Therefore, it becomes even more important for them to accept any of the deals as soon as possible. Also, it is reported that the committee will have two members, both of which are We Company’s board directors. They are handed the task of representing interests of all the investors while SoftBank will reportedly not have a representative. Also, it is found out that Adam Neumann who was the CEO of WeWork till last month and still is the Chairman of WeWork’s board is not in the committee as well.