The We Company, parent company of WeWork, is reportedly considering lowering its total valuation significantly in a planned initial public offering that could come as early as later in September. The move would be a strong indication that investors are raising the level of scrutiny they are applying to shares of high-flying tech companies as they make the transition to being traded in public equity markets.
In the latest round of private equity financing, WeWork was valued at $47 billion, but speaking on the condition of confidentiality, bankers with knowledge of the proposed deal now say that a public valuation of $20 to $30 billion is more likely.
2019 has been a huge year so far for highly anticipated IPOs, and the results have been mixed. While some companies like Zoom Video
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