https://wccftech.com/wework-valuation-may-fall-below-8-billion-an-over-80-drop/

WeWork may be facing a valuation of only $8 billion in a potential bailout deal for the beleaguered company. If true, this is a very large blow to the SoftBank Vision Fund that has reportedly invested over $10 billion into the start-up.  This was a massive investment and a large vote of confidence in the office solutions company that last year lost $1.61 billion. To say that this confidence was unfounded would be an understatement and calls into question the ability of such funds to pick and choose market winners. Looking to help fix the problem, many banks and investment firms, led by JP Morgan Chase (NYSE:JPM) are looking to step up and correct the problems at the company with a $5 billion loan.  One major player that will likely avoid this funding is Goldman Sachs Group, Inc. which previously participated in debt financing.

WeWork is turning into something of a cautionary tale, in addition to other recent IPO’s, about the overvaluation of companies with no clear path to profits and continuing losses. This follows other recent disappointments like Uber which saw a weak IPO for Softbank (OTCMKTS:SFTBY). Many market watchers think that there is a high likelihood that JP Morgan will be able to come through with financing since it has a lot of investors that would take a large loss if the company went bankrupt.  Troubling for WeWork though is what would occur if it doesn’t. They don’t have many options when it comes to financing and they may have to cut a deal with Softbank, which would then take a controlling stake in the company.