2019-09-05 — cnbc.com
The valuation targets for controversial real estate company WeWork are being dramatically lowered and the real estate company will not go public next week, sources told CNBC's David Faber. Even at a $25 billion valuation, the demand is not there, according to the sources. WeWork last raised money at a $47 billion valuation in the private market.
Sam Zell, who made nearly $6 billion in the commercial real estate business and joined CNBC on Wednesday, slammed WeWork for offering little more than what already exists in the marketplace.
"I had the privilege of investing in this kind of company once before. As a matter of fact, this kind of company began in 1956," when office subletting emerged, Zell said Wednesday. "Every single company in this space has gone broke," he said.
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