Office space sharing company WeWork lost $1.25 billion in the third quarter, ahead of a bailout last month by Japan's SoftBank Group (SFTBY) , which gave WeWork a $3 billion investment after its IPO plans fell through and the cash-strapped company needed an infusion of capital.
We Co., the parent of WeWork, said Wednesday that revenue was $934 million for the third quarter, a 94% increase year-over-year. However, new market development and leasing costs surged, it said.
According to a report in the Wall Street Journal, We Co. reported a $197 million charge related to asset impairments as it wrote down the costs of businesses it has acquired, according to a person familiar with the charge. Costs related to the planned IPO, other deals and restructuring totaled $83 million.
A report from Bloomberg News late Wednesday said the company's co-chief executive officers, Artie Minson and Sebastian Gunningham, called the quarter a "difficult chapter" for the company and said they're developing a plan to "provide a clear path to profitability." Bloomberg, citing an email to WeWork staff, reported that would include selling assets and cutting jobs.
WeWork is in the market for new leadership following the ouster of co-founder and former CEO Adam Neumann after the company filed an initial public offering prospectus that received intense scrutiny and that called into question his leadership.
This article was written by a staff member of TheStreet.