Goldman Sachs CEO David Solomon says the financial institution's stake in WeWork remains to be worthwhile, even after the corporate suffered plenty
Goldman Sachs CEO David Solomon says the financial institution’s stake in WeWork remains to be worthwhile, even after the corporate suffered plenty of valuation cuts and now faces a bailout disaster.
“That was an funding we made plenty of years in the past at a decrease valuation … on the present mark, even when it went down from right here, we nonetheless have a revenue within the remaining place,” Solomon instructed CNBC’s Wilfred Frost on Thursday.
The co-working house firm has gone via a vicious cycle of scrutiny prior to now few months. As soon as valued as excessive as $47 billion, some estimates put WeWork’s valuation at $15 billion or lower. Within the weeks since, co-founder Adam Neumann was ousted from the function of CEO by WeWork’s board, the corporate withdrew its IPO paperwork and it’s now poised to run out of money by the middle of next month. J.P. Morgan and SoftBank are in discussions to place collectively a financing package deal for WeWork.
“We’re watching that scenario like everyone else and will probably be fascinating to see, as they re-focus the enterprise, how that enterprise strikes ahead,” Solomon stated.
Solomon additionally defended WeWork’s mannequin, saying “there’s a actual enterprise that underlies that.” Requested why Goldman signed off on WeWork’s IPO paperwork, Solomon gave his tackle how the agency tried to navigate a battle of curiosity between its due diligence and its incentive to assist WeWork debut…