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Sometimes The Markets Do Their Job
Howard Lindzon
September 18, 2019
WeWork pulled their IPO yesterday.
There are endless stories and opinions and all I can think is the markets did their job.
What is the S&P doing?
Cruising near all-time highs.
There was no way that retail investors should have been left holding the bag of this company in current condition. End of that story.
That story has ended for now, but I also live and work in a world where this story bleeds back into and that is what does it say about the private markets?
From Bloomberg:
The value of WeWork’s bonds sunk the most on record Tuesday on concerns that the cash-burning company will miss out not only on the more than $3 billion it planned to raise in the offering, but also a $6 billion credit facility tied to a successful IPO. WeWork must carry out the offering by Dec. 31 to get the loan, Bloomberg previously reported.
It is fascinating and quite possible that WeWork could go from a planned $47 billion IPO in September to a reorganization by November.
I can tell you that not much has changed in the private markets…yet.
I have a feeling it will.
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