WeWork is once again looking to go public — but only if it starts making money.
The beleaguered office-sharing startup could take another shot at an initial public offering after it becomes profitable, a milestone it expects to reach next year, CEO Sandeep Mathrani reportedly said.
“I’m a big believer in one step at a time so let’s hit profitable growth first, and we’ll then revisit the IPO plan,” Mathrani told reporters in India on a Wednesday video call, according to Bloomberg News.
WeWork abandoned its first attempt at an IPO in September 2019 amid concerns about ex-chief executive Adam Neumann’s alleged self-dealing, erratic behavior and drug use. The company — which has taken a beating from the coronavirus pandemic — has since sought to cut costs and focus on its core office-rental business.
While credit-rating agency Fitch Ratings warned last week that the struggling startup could default on its obligations, Mathrani said WeWork has racked up $1 billion in annual savings by cutting more than 8,000 staffers and is 75 percent of the way through a review of its global locations, Bloomberg reported.
He also revealed that he’s still in touch with Neumann, who stepped down last year a week before the IPO was scrapped. Neumann was said to have received a more than $1 billion golden parachute upon his exit, though WeWork recently killed a $185 million consulting deal with the 41-year-old co-founder.
“We chitchat twice a month and the conversation is about the business,” Mathrani said, according to Bloomberg. “He wants to know what I’m doing.”
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