Two unusual moves by the parent of WeWork before its initial public offering.
Sources tell Reuters the We Company will host an analyst day to educate the Wall Street banks about the company's business even though it has yet to hire underwriters for its offering.
That indicates the shared office start-up is leaving nothing to chance at a time when some high-profile IPOs sporting huge valuations like Uber and Lyft have struggled or others have shelved or scrapped IPOs.
A WeWork spokesman declined to comment.
Separately, the Wall Street Journal reports WeWork's co-founder Adam Neumann has cashed out more than $700 million from the company ahead of its public debut.
Such early moves often lead investors to question the degree of confidence founders have in the companies they built.
But the Journal reports people close to Neumann point out he has also borrowed against some of his WeWork shares, and that they say, shows he's bullish about the company's long-term prospects.
Star up WeWork continues to flounder. In 2019 troubled start up WeWork pulled its IPO. The company reduced the size of the IPO after consumers lost interest in the company. Cofounder Adam Neumann was ousted as CEO and chairman. Real-estate veteran Sandeep Mathrani started as CEO in February. In April, investor SoftBank backed out of its plan to buy $3 billion worth of WeWork shares, including nearly $1 billion from Neumann. Two of WeWork's board members then sued the investor.
After considering a massive valuation cut to drum up investor interest, WeWork pulled its IPO in 2019. At the time, co-founder Adam Neumann was ousted as CEO and chairman. In April, investor SoftBank backed out of its plan to buy $3 billion worth of WeWork shares, including nearly $1 billion from Neumann. The novel coronavirus COVID-19 pandemic has done no favors for the company.
U.S stocks rose Wednesday and the Nasdaq hit a record closing high, supported by tech shares as early signs of an economic rebound offset concern about rising coronavirus cases across the country. Fred Katayama reports.
In March, Bernie Sanders lost his second bid for the Democratic presidential nomination. According to the NY Times the George Floyd protests and their cultural repercussions, may have destroyed Sanders entire case for a socialist America. The paper posits that this summer he may lose his battle for the future of the left, his legacy gone up in smoke. Cultural battles, pro business and pro Wall Street programs have over shadowed Sanders "millionaires and billionaires are evil" narrative.
As coronavirus cases rise again, Gerber Kawasaki's Brett Sifling is bullish on the prospects for pricey "stay-at-home" stocks. He tells Reuters' Fred Katayama why he particularly favors Activision and Netflix.
Men's clothier Brooks Brothers filed for Chapter 11 bankruptcy on Wednesday, joining a long list of retailers including Neiman Marcus that have crumbled under the impact of the coronavirus crisis. Fred Katayama reports.
United Airlines has warned of booking declines and potential furloughs due to new travel restrictions in an internal presentation to the carrier's employees, a person with knowledge of the matter told Reuters. Fred Katayama reports.
The NY Times and Business Insider report that Uber is holding acquisition talks with food delivery startup Postmates. Earlier this year Uber was reported to be holding acquisition talks with Grubhub. But those talks reportedly fell through. In mid-June Grubhub announced it was merging with Just Eat. Postmates is smaller than Grubhub, and would be more amenable to a take-over.
Just Eat Takeaway, a food-delivery service based in Europe, bought Grubhub. According to Gizmodo, while sales have spiked, operation costs have also been high. The acquisition of Grubhub makes it the largest digital food delivery service operator outside of China. Stories analyzing the deal pointed out a European deal was less likely to get blocked by antitrust regulators. Before Just Eat Takeaway acquired Grubhub, Uber wanted to also buy the food-delivery service.
Travis Kalanick is the founder of Uber. He was recently kicked out of the company. Business Insider reports that Kalanick founded CloudKitchens, a delivery-only restaurant operation. Kalanick says the company is the victim of arson. On Twitter, the company said two fires were started. They posted video evidence of the intruders. The company is worth more than $7 billion. It's funded from Kalanick's Uber wealth as well as Saudi Arabia.
California's Public Utilities Commission made an order Tuesday regarding Uber and Lyft drivers. All drivers are "presumed to be employees" under AB-5, the state's new gig work law. The agency said they must now comply with existing regulations related to employees. The ruling is a significant defeat for Uber and Lyft, which had argued publicly and in lawsuits. Their argument was that their drivers were properly classified as independent contractors.
Reuters Lyft said some cities were starting to see significant rebounds following the coronavirus' decimation of ride-hailing requests. Overall, US rides were up 26% in May compared to April, with some cities like Austin, Texas up as much as 73%. Shares of Lyft rose about 4% in after-hours trading as investors welcomed the rebound. Visit Business Insider's homepage for more stories.
Uber and Lyft said they'll suspend rides and deliveries in cities where curfews are issued. Over the weekend, Uber temporarily shut down in parts of country says Business Insider. California, Minnesota, New York City, Los Angeles, Washington D.C. and others have enacted curfews. Rentable scooters have also become a mainstay of protests. Lime says it's removing vehicles from select cities. The companies hope to discourage people from using their companies to get to protests.
Dr. Anthony Fauci warned that the US is still in its first wave of the coronavirus. This warning comes as multiple states record their highest-ever daily new case totals. "People keep talking about a second wave. We're still in a first wave." Fauci to The Wall Street Journal Many countries that appear to have brought the virus under control are now worried. A possible second wave, where cases peak again, is very much a reality reports Business Insider.
CNBC reports that Instacart is raising $225 million. That boosts its valuation from $8 billion in 2018 to $13.7 billion. The company plans to use these new funds to support its partner grocers and shoppers, who fulfill orders for customers. They are also planning to improve conditions for its shoppers. DoorDash is also close to raising funds at a $15 billion valuation. DoorDash was valued at around $13 billion in 2019, according to The Wall Street Journal.
Car rental giant Hertz filed for bankruptcy in May due to the coronavirus pandemic. On Friday, a judge ruled Hertz can sell $1 billion in new stock to raise money. The Wall Street Journal reports that traders bought Hertz stock since its bankruptcy. The company's lawyers cited that volatility as a "unique opportunity" to shore up its coffers. After the Chapter 11 filing on May 22, shares of Hertz skyrocketed. The stock flew up Robinhood's list of most popular names.
New York (CNN Business) The $26 billion merger between T-Mobile and Sprint is reportedly one step closer thanks to a powerful nod of approval. A federal judge will rule in favor of the marriage allowing the two telecom giants to combine, the Wall Street Journal reported. News of the potential green light sent Sprint's stock up a stunning 64% in premarket trading.