TRD Podcast Breaks Down WeWork’s Comeback Attempt

Can WeWork make a WeSurgence?

That’s the question Keith Larsen sought to answer when he dove into the co-working firm’s financials last month ahead of its upcoming third-quarter earnings report. Suffice it to say: The company faces a difficult road in its effort to bounce back from its disastrous 2019 IPO attempt.

“The situation isn’t great,” Larsen told TRD’s podcast, “Deconstruct.”

On the latest episode of the award-winning podcast, Larsen breaks down where WeWork stands and how it’s going about cutting costs under CEO Sandeep Mathrani. The company co-founded by ousted former chief executive Adam Neumann faces $2.1 billion in short term debt and reported more than $600 million in losses in the second quarter.

“Obviously the issues with the office market and the capital markets have made it even tougher,” Larsen said. “And their stock price is trading at such a low price.”

WeWork shares were priced at around $2.30 on Friday afternoon, down from $11.78 when it debuted on the New York Stock Exchange a year ago.

“It’s going to be difficult for them to raise any new money on the public market,” Larsen added.

Where WeWork goes from here is clear — it needs to keep reducing expenses in any way possible, Laren said, including terminating leases and cutting staff. The company recently closed only Hollywood location, which it had originally leased through 2029.

It also needs to raise money, Larsen said. But that’s difficult to do without taking on more debt.

Tune in now for the full interview, and check back every Monday for new episodes of “Deconstruct” on Apple Podcasts, Spotify, Audible or wherever you get your podcasts. This episode was made possible by Dottid.

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