WeWork is preparing to pay around $500 million in order to finance its current expansion plans, according to reports.
Currently, they plan to sell $500 million in bonds to investors in their first major deal. WeWork is taking this time to hop into the market as interest rates rise and cash is burning.
“As a company in a sustained growth mode, WeWork is not profitable on a combined basis, as significant growth operating expenses more than offset existing property cash flows,” analyst Fitch Ratings said in a recent report.
Many large companies are currently posting losses while continuing to expand and seemingly thrive. WeWork joins the likes of Netflix as one of those services who seemingly should be posting profits, but aren’t.
WeWork will survive for now, as their service is in demand. If the demand slips, however, they may face issues.
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