For Softbank to break even on its investment, WeWork would need to command a $24 billion valuation, according to calculations by Chris Lane, a senior research analyst at Sanford C. Bernstein (first noticed by the Nikkei Asian Review). The Sanford Bernstein analyst calculates that SoftBank would have made a $7 billion paper profit if WeWork had maintained the $47 billion valuation reported in January. At a $15 billion valuation, SoftBank’s potential loss on paper grows to $3.8 billion. Based on these calculations, WeWork would need to eventually IPO with at least a $25 billion valuation for SoftBank to make a profit from its original investment. When SoftBank invested in January, it did so at a $47 billion valuation.

Source: Forbes October 01, 2019 21:11 UTC