AN OVERALL MARKET THAT IS
FRACTIONALLY HIGHER.
>> ALL RIGHT WE'LL CONTINUE TO
WATCH ALL THESE NAMES
THROUGHOUT THE DAY ANOTHER BIG
NAME THAT WE TEASED BEFORE THE
BREAK THOUGH THE WE COME THE A
K A KNOWN IN YOUR HEAD AS WE
WORK THEIR VALUATION TARGETS
MAY BE SLASHED BY MORE THAN
HALF DUE TO WEAK DEMAND
FROM INVESTORS. WALL STREET
JOURNAL IS REPORTING THAT
WE WORKS PARENT IS CONSIDERING
PUTTING A PRICE TAG ON ITS IPO
THAT WOULD VALUE THE SPACE
SHARING
COMPANY SOMEWHERE IN THE
BILLION RANGE THAT'S
DRASTICALLY LOWER THAN THE
COMPANY'S PRIVATE VALUATION
AROUND 40 $7 BILLION JOINING
US NOW MARIE FARRELL WAS A
REPORTER AT THE WALL STREET
JOURNAL MARINE ALWAYS A
PLEASURE TO SPEAK WITH
YOU WHAT WHAT I THINK IS
WRAPPING ME ABSOLUTELY WHAT'S
BEHIND THE CHALLENGER IS IT
REALLY JUST WEAK DEMAND.
>> YEAH AND IT'S WHAT I'VE
HEARD FROM PEOPLE AS YOU KNOW
THEY SAY IT'S BEEN A WAKE-UP
CALL FOR THE COMPANY AND ITS
UNDERWRITERS AS THEY'VE BEEN
GOING OUT TO
MEET WITH INVESTORS IN THE FOOT
PUBLIC A FEW WEEKS AGO EVERY
WAS FINALLY ABLE TO SEE
THEIR FINANCIALS REALLY SEE THE
LOSSES IN GREAT DETAIL, LEARN A
LOT MORE ABOUT ADAM
MAN THAT THE CO-FOUNDER AND
SEALS RELATIONSHIP WITH THE
COMPANY'S
WHAT PEOPLE SOME PEOPLE SAW A
LOT OF POTENTIAL CONFLICT.
>> SYSTEMS.
>> THEY'VE BEEN GOING OUT THERE
AND THE DEMAND HAS NOT COME IN
ANYWHERE CLOSE TO WHERE THEY
LIKE LAST RAISE MONEY WHICH IS
UP BILLION. SO THERE'S BEEN
KIND OF.
>> BECAUSE OF THE WEAK DEMAND
AND BECAUSE OF ALL OF THE
QUESTIONS RIGHT THAT EMERGED
FROM THAT PUBLIC FILING THAT IT
DID IN PREPARATION FOR AN
OFFER.
>> I THINK THERE IS A CHANCE
THAT THIS IT FOUND THAT THE
COMPANY IS STILL IT REALLY
MOVING FORWARD WITH PLANS THAT
COULD HAPPEN AS SOON AS MONDAY.
THERE'S A CHANCE OF THE
RICHEST ART SO IF THAT HAPPENS
EVERYTHING GOES OK THEY WOULD
BE PUBLIC AND
2 BUT IT SOUNDS
LIKE ADAM IN WAS IN TOKYO LAST
WEEK MEETING WITH SOFTBANK
WHICH IS ONE OF THEIR
BIGGEST INVESTORS. THEY TALK
ABOUT A CORNERSTONE INVESTMENT
WHICH AND THEY WOULD BE PUTTING
POTENTIALLY GOOD AMOUNT OF
MONEY INTO THE IPO OR
POTENTIALLY GIVING THEM MONEY
THAT WOULD LET THEM GIVEN THAT
CHANCE TO PUSH OFF IPO TILL
2020. THE THING IS THEY DO NEED
A LOT
OF MONEY JUST TO RUN THEIR
BUSINESS AND TO FUND ALL THE
THAT IS KIND OF KEY TO THE
BUSINESS AND
Q A THEY SAID THERE'S A LOT OF
EXCITEMENT AROUND THE COMPANY
IT IS THAT GROWTH AND THEN YOU
KNOW A LOT OF MONEY TOGETHER.
>> AND SO FOR SOFTBANK
I MEAN THERE WAS A NUMBER THAT
WE WORK WAS LOOKING TO GET AT
THE TAIL END OF 2018.
FROM SOFTBANK THEY DIDN'T GET
THAT THEY
GOT REASONABLY LOWER BUT STILL
GOT BILLIONS OF DOLLARS DRESS
INTO THEIR BUSINESS. THE BIG
QUESTION FOR SOFTBANK WHAT'S
DIFFERENT FROM DECEMBER TO NOW
ABOUT YOUR PLATFORM, JUST
BECAUSE YOU WANT TO GO PUBLIC
AND YOU NEED THE CAPITAL DOES
THAT MEAN WE SHOULD GIVE IT TO
YOU AND HOW DOES IT LOOK LIKE
SOFTBANK IS
GOING TO HOW DOES IT LOOK LIKE
THEIR APPETITE IS FAIR AND FOR
THAT.
>> IT'S HARD TO TELL RIGHT NOW
IT IS VERY UNCLEAR WHETHER
THEY'LL PUT MONEY IN INTO THE
IPO IT'S WHICH I THINK A LOT
OF PEOPLE WOULD SEE IS A GOOD
SIGN THAT THEY'RE WILLING TO
KEEP
BACKING IT. AND THEN IT WOULD
OBVIOUSLY LESS IN THE AMOUNT
THAT THEY NEED TO RAISE THE IPO
THEY'RE EXPECTING TO RAISE
BETWEEN 3 4 BILLION.
PINKS PUTS IN A BIG CHUNK OF
THAT ITS LAST THAT THAT
SHOULD HELP A DEMAND FOR THE
IPO JUST THAT THEY'LL BE LESS
OF IT UM BUT IT'S UNCLEAR I
MEAN I GUESS THERE'S ALSO A
SENSE THAT MAYBE THEY DON'T
WANT TO TAKE THEM
BIG HIT ON THE VALUATION RIGHT
NOW SO IF YOU LET THEM WAIT.
2020 SEE
THINGS GET BETTER IT'S THE
SENSE WE GET NOW IS IT'S A VERY
FLUID SITUATION. BOTH WITH THEM
WE
WORK IN BUT INVESTORS AND WHAT
THEY'RE HEARING AND ANY IPO AS
WELL AS SOUTH BANK.
>> MAUREEN IT LOOK THE TIMING
OF ITS PUBLIC IPO FILING DROPS
AT AN INCONVENIENT TIME RIGHT
RIGHT AROUND THE TIME THAT
HE WAS SEEING THE YIELD CURVE
AND FOR FOR THE FIRST TIME
SINCE 2007 BEFORE THE FINANCIAL
CRISIS AND YOU HAD BROUGHT UP
THE POINT RIGHT THAT PEOPLE ARE
STARTING TO ADD.
A SHOOTING THAT IS
WEIGHING INTO POTENTIALLY WEAK
DEMAND CONCERNS THAT THIS
COMPANY MIGHT NOT BE ABLE TO
WITHSTAND A RECESSION.
>> I THINK THAT THAT IS THE BIG
CONCERN AMONG INVESTORS AND
ALSO IN ANOTHER THING WEIGHING
ON THEM AND JUST KIND OF A LOOK
AT THE BACKDROP RIGHT NOW IS
UBER
AND LYFT I MEAN THESE 2 OTHER
COMPANIES WE SAW EARLIER THIS
YEAR THE MEGA COMPANY THAT
EVERYONE'S BEEN WAITING FOR
THAT HAD REALLY BIG LOSSES.
TO A CERTAIN EXTENT IN THOSE
CASES NOT AS MUCH GROWTH AS
INVESTORS
HAD WANTED. AND THESE INVESTORS
WHO BOUGHT IN IN SOME CASES,
YOU KNOW WE'RE KIND OF SCALE
BACK A LITTLE BIT WHERE I THINK
THAT THEY'RE GOING TO
COME IN. AND THEIR WAY DOWN TO
GET A GOOD BET ON THESE 2 THE 2
COMPANIES THAT PROBABLY LOOK
THE MOST LAKE.
WE WORK AND YOU'RE
DOWN SO MUCH I MEAN THERE IS
JUST LIKE A REAL CONCERN LIKE
IF WE DON'T BURN ON THOSE
COMPANIES ARE GOING TO REALLY
WANT TO COME IN AND THE WORK.
WHY YOU KNOW.
HOW DANGEROUS COULD THIS PEOPLE
PORTFOLIO THAT THOSE ARE THE
THINGS I'M HEARING
FROM INVESTORS.
>> THE LAW ALSO NEW REPORT
MARINE YOU TALKED ABOUT WE AND
HOW THEY TOOK SOME STEPS THIS
WEEK TO REALLY MAKE THEIR
BUSINESS
MORE AND HEISEY TO INVESTORS
EYE TO THE EXTENT THAT THEY
COULD AT THIS POINT. HOWEVER,
THESE ARE BIG THINGS I MEAN
THEY HAD THEIR FIRST FEMALE
BOARD MEMBER THEY
ALSO UNWOUND THIS CONTROVERSIAL
TRANSACTION BETWEEN THE COMPANY
IN WAS THIS ENOUGH.
>> I DON'T KNOW I MEAN THAT IT
DOES IT SEEMS LIKE IT
IT SHOWS THAT IN THIS SENSE,
I'M GETTING FROM INVESTORS IS
OKAY,
THEY'RE LISTENING. IT'S A STEP
IN THE RIGHT DIRECTION, BUT
THERE THEY WERE SORT OF MASSIVE
LOANS BETWEEN THE COMPANY AND
ADAM
YOU MAN. HE'S YOU KNOW THEY'RE
STILL DUAL-CLASS CHIP STOCK
THAT HE'S AND WE'VE SEEN IS
THAT A LOT
OF COMPANIES. BUT HE HAS REALLY
CONTROL OF THE COMPANY. SO
I THINK IT WAS SOMETHING
BUT AND I MEAN THE NUMBER OF
SMALL, I MEAN IT WAS KIND OF
SHOCKING TO SO MANY PEOPLE THAT
THE TRANSACTION THE $6
MILLION THAT. THE COMPANY PAID
FOR THE WE TRADEMARK TO OUT AND
DIRECTLY YES THEY UNWOUND IT,
BUT IT IT WAS A SMALL
AMOUNT IN I GUESS IT WAS A STEP
IN THE RIGHT DIRECTION, BUT.
QUESTIONABLE WHETHER THIS
YOU KNOW CHANGES PEOPLE'S