WeWork Announces Reverse Stock Split to Prevent Delisting

WeWork, the office-sharing company once valued at $47 billion, announced on Friday that it will undergo a 1-for-40 reverse stock split in an attempt to prevent its stock from being delisted.

Following the announcement, the shares declined by 11% and closed at 14 cents. Since late March, the shares have been trading below $1, causing the company’s market capitalization to drop to around $300 million.

WeWork stated in a filing with the SEC, “The Reverse Stock Split is being effected to regain compliance with the $1.00 per share minimum closing price required to maintain continued listing on the New York Stock Exchange.”

The reverse split will take place after the market closes on Sept. 1. While the move will not improve the company’s financials or valuation, it would increase the stock price to $5.60 based on Friday’s closing price. Failure to maintain a $1 share price for 30 days can result in delisting by the NYSE.

Despite the potential increase in stock price, WeWork is facing significant challenges. The company recently expressed doubts about its ability to continue operating due to mounting losses and dwindling cash reserves.

In the first half of this year, WeWork reported a net loss of $700 million, following a loss of $2.3 billion in 2022. As of June 30, the company had $205 million in cash and equivalents and total liquidity of $680 million. It also holds $2.91 billion in long-term debt.

Over the past few years, WeWork has experienced one of the most remarkable corporate collapses in recent U.S. history. Once valued at $47 billion by SoftBank, the company attempted and failed to go public in 2019. The pandemic exacerbated its struggles as many companies terminated their leases and the economic downturn led to more client closures.

WeWork went public in 2021 through a special purpose acquisition company (SPAC). Since the end of 2021, its stock has lost 98% of its value.

WATCH: ‘s Andrew Ross Sorkin interviews WeWork founder Adam Neumann.

WeWork, the office-sharing company once valued at $47 billion, announced on Friday that it will undergo a 1-for-40 reverse stock split in an attempt to prevent its stock from being delisted.

Following the announcement, the shares declined by 11% and closed at 14 cents. Since late March, the shares have been trading below $1, causing the company’s market capitalization to drop to around $300 million.

WeWork stated in a filing with the SEC, “The Reverse Stock Split is being effected to regain compliance with the $1.00 per share minimum closing price required to maintain continued listing on the New York Stock Exchange.”

The reverse split will take place after the market closes on Sept. 1. While the move will not improve the company’s financials or valuation, it would increase the stock price to $5.60 based on Friday’s closing price. Failure to maintain a $1 share price for 30 days can result in delisting by the NYSE.

Despite the potential increase in stock price, WeWork is facing significant challenges. The company recently expressed doubts about its ability to continue operating due to mounting losses and dwindling cash reserves.

In the first half of this year, WeWork reported a net loss of $700 million, following a loss of $2.3 billion in 2022. As of June 30, the company had $205 million in cash and equivalents and total liquidity of $680 million. It also holds $2.91 billion in long-term debt.

Over the past few years, WeWork has experienced one of the most remarkable corporate collapses in recent U.S. history. Once valued at $47 billion by SoftBank, the company attempted and failed to go public in 2019. The pandemic exacerbated its struggles as many companies terminated their leases and the economic downturn led to more client closures.

WeWork went public in 2021 through a special purpose acquisition company (SPAC). Since the end of 2021, its stock has lost 98% of its value.

WATCH: ‘s Andrew Ross Sorkin interviews WeWork founder Adam Neumann.

WeWork, the office-sharing company once valued at $47 billion, announced on Friday that it will undergo a 1-for-40 reverse stock split in an attempt to prevent its stock from being delisted.

Following the announcement, the shares declined by 11% and closed at 14 cents. Since late March, the shares have been trading below $1, causing the company’s market capitalization to drop to around $300 million.

WeWork stated in a filing with the SEC, “The Reverse Stock Split is being effected to regain compliance with the $1.00 per share minimum closing price required to maintain continued listing on the New York Stock Exchange.”

The reverse split will take place after the market closes on Sept. 1. While the move will not improve the company’s financials or valuation, it would increase the stock price to $5.60 based on Friday’s closing price. Failure to maintain a $1 share price for 30 days can result in delisting by the NYSE.

Despite the potential increase in stock price, WeWork is facing significant challenges. The company recently expressed doubts about its ability to continue operating due to mounting losses and dwindling cash reserves.

In the first half of this year, WeWork reported a net loss of $700 million, following a loss of $2.3 billion in 2022. As of June 30, the company had $205 million in cash and equivalents and total liquidity of $680 million. It also holds $2.91 billion in long-term debt.

Over the past few years, WeWork has experienced one of the most remarkable corporate collapses in recent U.S. history. Once valued at $47 billion by SoftBank, the company attempted and failed to go public in 2019. The pandemic exacerbated its struggles as many companies terminated their leases and the economic downturn led to more client closures.

WeWork went public in 2021 through a special purpose acquisition company (SPAC). Since the end of 2021, its stock has lost 98% of its value.

WATCH: ‘s Andrew Ross Sorkin interviews WeWork founder Adam Neumann.

WeWork, the office-sharing company once valued at $47 billion, announced on Friday that it will undergo a 1-for-40 reverse stock split in an attempt to prevent its stock from being delisted.

Following the announcement, the shares declined by 11% and closed at 14 cents. Since late March, the shares have been trading below $1, causing the company’s market capitalization to drop to around $300 million.

WeWork stated in a filing with the SEC, “The Reverse Stock Split is being effected to regain compliance with the $1.00 per share minimum closing price required to maintain continued listing on the New York Stock Exchange.”

The reverse split will take place after the market closes on Sept. 1. While the move will not improve the company’s financials or valuation, it would increase the stock price to $5.60 based on Friday’s closing price. Failure to maintain a $1 share price for 30 days can result in delisting by the NYSE.

Despite the potential increase in stock price, WeWork is facing significant challenges. The company recently expressed doubts about its ability to continue operating due to mounting losses and dwindling cash reserves.

In the first half of this year, WeWork reported a net loss of $700 million, following a loss of $2.3 billion in 2022. As of June 30, the company had $205 million in cash and equivalents and total liquidity of $680 million. It also holds $2.91 billion in long-term debt.

Over the past few years, WeWork has experienced one of the most remarkable corporate collapses in recent U.S. history. Once valued at $47 billion by SoftBank, the company attempted and failed to go public in 2019. The pandemic exacerbated its struggles as many companies terminated their leases and the economic downturn led to more client closures.

WeWork went public in 2021 through a special purpose acquisition company (SPAC). Since the end of 2021, its stock has lost 98% of its value.

WATCH: ‘s Andrew Ross Sorkin interviews WeWork founder Adam Neumann.

WeWork, the office-sharing company once valued at $47 billion, announced on Friday that it will undergo a 1-for-40 reverse stock split in an attempt to prevent its stock from being delisted.

Following the announcement, the shares declined by 11% and closed at 14 cents. Since late March, the shares have been trading below $1, causing the company’s market capitalization to drop to around $300 million.

WeWork stated in a filing with the SEC, “The Reverse Stock Split is being effected to regain compliance with the $1.00 per share minimum closing price required to maintain continued listing on the New York Stock Exchange.”

The reverse split will take place after the market closes on Sept. 1. While the move will not improve the company’s financials or valuation, it would increase the stock price to $5.60 based on Friday’s closing price. Failure to maintain a $1 share price for 30 days can result in delisting by the NYSE.

Despite the potential increase in stock price, WeWork is facing significant challenges. The company recently expressed doubts about its ability to continue operating due to mounting losses and dwindling cash reserves.

In the first half of this year, WeWork reported a net loss of $700 million, following a loss of $2.3 billion in 2022. As of June 30, the company had $205 million in cash and equivalents and total liquidity of $680 million. It also holds $2.91 billion in long-term debt.

Over the past few years, WeWork has experienced one of the most remarkable corporate collapses in recent U.S. history. Once valued at $47 billion by SoftBank, the company attempted and failed to go public in 2019. The pandemic exacerbated its struggles as many companies terminated their leases and the economic downturn led to more client closures.

WeWork went public in 2021 through a special purpose acquisition company (SPAC). Since the end of 2021, its stock has lost 98% of its value.

WATCH: ‘s Andrew Ross Sorkin interviews WeWork founder Adam Neumann.

WeWork, the office-sharing company once valued at $47 billion, announced on Friday that it will undergo a 1-for-40 reverse stock split in an attempt to prevent its stock from being delisted.

Following the announcement, the shares declined by 11% and closed at 14 cents. Since late March, the shares have been trading below $1, causing the company’s market capitalization to drop to around $300 million.

WeWork stated in a filing with the SEC, “The Reverse Stock Split is being effected to regain compliance with the $1.00 per share minimum closing price required to maintain continued listing on the New York Stock Exchange.”

The reverse split will take place after the market closes on Sept. 1. While the move will not improve the company’s financials or valuation, it would increase the stock price to $5.60 based on Friday’s closing price. Failure to maintain a $1 share price for 30 days can result in delisting by the NYSE.

Despite the potential increase in stock price, WeWork is facing significant challenges. The company recently expressed doubts about its ability to continue operating due to mounting losses and dwindling cash reserves.

In the first half of this year, WeWork reported a net loss of $700 million, following a loss of $2.3 billion in 2022. As of June 30, the company had $205 million in cash and equivalents and total liquidity of $680 million. It also holds $2.91 billion in long-term debt.

Over the past few years, WeWork has experienced one of the most remarkable corporate collapses in recent U.S. history. Once valued at $47 billion by SoftBank, the company attempted and failed to go public in 2019. The pandemic exacerbated its struggles as many companies terminated their leases and the economic downturn led to more client closures.

WeWork went public in 2021 through a special purpose acquisition company (SPAC). Since the end of 2021, its stock has lost 98% of its value.

WATCH: ‘s Andrew Ross Sorkin interviews WeWork founder Adam Neumann.

WeWork, the office-sharing company once valued at $47 billion, announced on Friday that it will undergo a 1-for-40 reverse stock split in an attempt to prevent its stock from being delisted.

Following the announcement, the shares declined by 11% and closed at 14 cents. Since late March, the shares have been trading below $1, causing the company’s market capitalization to drop to around $300 million.

WeWork stated in a filing with the SEC, “The Reverse Stock Split is being effected to regain compliance with the $1.00 per share minimum closing price required to maintain continued listing on the New York Stock Exchange.”

The reverse split will take place after the market closes on Sept. 1. While the move will not improve the company’s financials or valuation, it would increase the stock price to $5.60 based on Friday’s closing price. Failure to maintain a $1 share price for 30 days can result in delisting by the NYSE.

Despite the potential increase in stock price, WeWork is facing significant challenges. The company recently expressed doubts about its ability to continue operating due to mounting losses and dwindling cash reserves.

In the first half of this year, WeWork reported a net loss of $700 million, following a loss of $2.3 billion in 2022. As of June 30, the company had $205 million in cash and equivalents and total liquidity of $680 million. It also holds $2.91 billion in long-term debt.

Over the past few years, WeWork has experienced one of the most remarkable corporate collapses in recent U.S. history. Once valued at $47 billion by SoftBank, the company attempted and failed to go public in 2019. The pandemic exacerbated its struggles as many companies terminated their leases and the economic downturn led to more client closures.

WeWork went public in 2021 through a special purpose acquisition company (SPAC). Since the end of 2021, its stock has lost 98% of its value.

WATCH: ‘s Andrew Ross Sorkin interviews WeWork founder Adam Neumann.

WeWork, the office-sharing company once valued at $47 billion, announced on Friday that it will undergo a 1-for-40 reverse stock split in an attempt to prevent its stock from being delisted.

Following the announcement, the shares declined by 11% and closed at 14 cents. Since late March, the shares have been trading below $1, causing the company’s market capitalization to drop to around $300 million.

WeWork stated in a filing with the SEC, “The Reverse Stock Split is being effected to regain compliance with the $1.00 per share minimum closing price required to maintain continued listing on the New York Stock Exchange.”

The reverse split will take place after the market closes on Sept. 1. While the move will not improve the company’s financials or valuation, it would increase the stock price to $5.60 based on Friday’s closing price. Failure to maintain a $1 share price for 30 days can result in delisting by the NYSE.

Despite the potential increase in stock price, WeWork is facing significant challenges. The company recently expressed doubts about its ability to continue operating due to mounting losses and dwindling cash reserves.

In the first half of this year, WeWork reported a net loss of $700 million, following a loss of $2.3 billion in 2022. As of June 30, the company had $205 million in cash and equivalents and total liquidity of $680 million. It also holds $2.91 billion in long-term debt.

Over the past few years, WeWork has experienced one of the most remarkable corporate collapses in recent U.S. history. Once valued at $47 billion by SoftBank, the company attempted and failed to go public in 2019. The pandemic exacerbated its struggles as many companies terminated their leases and the economic downturn led to more client closures.

WeWork went public in 2021 through a special purpose acquisition company (SPAC). Since the end of 2021, its stock has lost 98% of its value.

WATCH: ‘s Andrew Ross Sorkin interviews WeWork founder Adam Neumann.