Search Mark
Home / Industry Dynamics

Trouble Stirs For WeWork As Stocks Plummet

Negotiations Ensue As Amazon Intends To Become Anchor Investor For Arm (AMZN.O) is in talks about joining other technology companies as a cornerstone investor in SoftBank Group Corp’s (9984.T) Arm Ltd ahead of its initial public offering (IPO), people familiar with the matter said yesterday.

Disney Task Force Explores A.I. To Minimize Cost

Walt Disney (DIS.N) has created a task force to study artificial intelligence (A.I.) and how it can be applied across the entertainment conglomerate, even as Hollywood writers and actors battle to limit the industry’s exploitation of the upcoming technology.

Rivian Reassures Liquidity On E.V. Production Target

Rivian Automotive (RIVN.O) raised its full-year production forecast, and its chief executive said the electric vehicle maker has enough money to last it throughout 2025 as it keeps a lid on costs. Shares in Rivian were immediately up by 1% in a choppy extended trading. The stock soared nearly 80% in the past three months.

Today’s News

WeWork Inc. is a provider of co-working spaces which includes physical and virtual shared spaces. For the past four years, WeWork has been trying to deliver a revolutionary workspace, with — where a co-working startup has the ability to transform into a stable, profitable public company. It progressed by replacing Adam Neumann, its rambunctious co-founder and former chief executive officer with an industry veteran that boasts a reputation of saving tumultuous real estate companies.

However, fate was not in favor of WeWork, nor was it saved, and the co-working company now says there’s a “substantial doubt” it will even be able to stay in business.

The New York-based company is experiencing a cash leakage, and customers of its office rentals are canceling their memberships in bulk, WeWork said in a statement yesterday. Its stock instantaneously fell by an overwhelming 25% in extended trading.

In totality, WeWork’s stock is down by 85% in 2023, trading at a meager 19 cents. Its bonds are at deeply distressed levels. The company’s 7.875% unsecured notes are due in 2025, last changed hands for 33.5 cents on the dollar, according to sources.

Other stock-related news include:

WeWork Grasps On The Straws Of Hope

WeWork Inc. shares plummeted more than 25% in extended trading after publicly declaring its “substantial doubt” about its ability to continue its operations. The company cited sustained losses and multiple canceled memberships to its office spaces.

Source: The Guardian

The co-working business will focus over the next 12 months on reducing rental costs, negotiating more favorable leases, increasing revenue and raising capital, WeWork said in a statement yesterday.

SoftBank Resumes Investments ‘Timidly’

SoftBank Group Corp.’s Vision Fund has recorded its first profit in more than a year and said that it is cautiously resuming investments to capitalize on the opportunities in artificial intelligence and other emerging technologies to date.

Source: CNBC

The Vision Fund invested approximately USD 1.6 billion in the June quarter after coming to a virtual halt as investors soured on money-losing startups. Still, this is just a fraction of the fund’s early spending pace.

China Deflation Affects Asian Shares

Stocks in Asia fell as investors digested consumer and producer price data from China that showed both measures registering contractions simultaneously for the first time since 2020.

Source: Bloomberg

Shares in Japan fell as benchmarks in mainland China and Hong Kong opened lower. This offset gains in South Korea while Australian equities traded mostly flat.

China’s inflation data showed a 0.3% drop in consumer prices in July from a year ago, less than the median forecast of a 0.4% contraction. Producer prices fell 4.4%, more than forecast. The Chinese currency extended gains driven partly by a stronger-than-expected yuan fixing.

Share to

Industry Dynamics

Vietnamese Property Tycoon On Trial For USD 12B Fraud 

Today’s News  The trial has commenced for Vietnamese real estate tycoon Truong My Lan, accused of a staggering USD 12 billion fraud, marking a significant chapter in Vietnam’s extensive anti-corruption initiative led by the ruling Communist party. The case, which implicates officials from both the central bank and government, could result in a death sentence or […]

2024-3-5 | Industry Dynamics

U.K.'s Largest Pension Fund Warns Against Government Reforms 

Today’s News  The chief executive of the Universities Superannuation Scheme, the U.K.’s largest private sector pension scheme, has cautioned against excessive government intervention in managing retirement funds.   Carol Young, leading the GBP 73 billion (USD 92 bn) scheme, expressed her support for new disclosure requirements on U.K. investments but raised concerns about potential ministerial […]

2024-3-4 | Industry Dynamics

Weekly Economic Calendar For March 4th, 2024 – March 8th, 2024

Weekly Economic Calendar For March 4th, 2024 – March 8th, 2024.

2024-3-1 | Industry Dynamics