What the numbers say: WeWork's stock was trading around $0.47 per share on Monday. As the firm's stock has been trading below the $1 per share mark for a long time, it is now at risk of being delisted from the NYSE. WeWork's current stock prices give it a market capitalization of $345.7M. Since its listing, the firm has lost $46.7B in value over the last four years, down from its peak of $47B in 2019. WeWork was valued at $9B when it went public through a SPAC merger in 2021.
What happened: The poor stock performance of WeWork has deepened losses at VC firms that still own equity stakes in the firm. VC firms SoftBank, Benchmark, and Insight Partners own 62%, 3%, and 2% stakes in WeWork, respectively. WeWork's falling stock prices have resulted in significant losses at SoftBank, the single largest shareholder with 461.5 million shares.
Where to see the impact: SoftBank Group has faced losses for four straight quarters in 2022, ending the year with a $5.8B loss across its Vision Funds and Latin American fund in the last quarter alone. By the end of Q4 2022, SoftBank's Vision Fund 2 had reportedly lost $17.6B throughout the year. The Japanese bank has allegedly lost more than $5.1B in WeWork. In a bid to recoup losses, SoftBank diluted its ownership in Alibaba to 3.8% and liquidated shares worth $7.2B earlier this year.
