Office-space startup WeWork lost $1.25 billion in the third quarter of 2019, as expenses far outpaced revenue growth, draining the company’s cash ahead of a bailout by SoftBank Group Corp. last month, the Wall Street Journal reported. We Co., as the parent company is officially known by, said in a report to debtholders that revenue surged 94 percent in the three months ended Sept. 30 to $934 million compared with the year-earlier period. WeWork’s prior record loss posted in the second quarter for a total of $638 million and is more than double the $497 million loss reported in same year-earlier period. Once considered the most valuable startup in the U.S. with a valuation of $47 billion, WeWork’s attempt to go public was eventually canned due to concerns over mounting losses, as well as the erratic management style of the now-departed chief executive, Adam Neumann, which eventually lead to him being ousted as CEO.
If you are considering starting a business and would like to speak with an attorney, contact our law office at 816-524-4949 or visit our website at Hoorfarlaw.com.