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SoftBank Takeover
The takeover of WeWork by SoftBank can either lead to the company's success or collapse. The first step of laying off workers will lead to quick positive spin-offs but only affect the company's long-term success. The company's first step should be to create a solid long-term plan that can lead it to profitability. The second step the company can take to regain public confidence is to re-brand. The current brand needs better taste from the investors. To regain traction in both the short-term and long-term will require the company to re-plan and re-brand to create value for investors.
Reflection
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The assignment has enabled me to comprehend the risk factors underlying IPOs. Also, I learned that investing in IPOs does not guarantee returns to investors. Therefore, the initial investment in IPOs is considered a subscription that can pay or fail to earn earnings. Incidentally, I learned that it is crucial to keenly analyze the long-term plan of start-ups before investing in the company.
References
Borgenicht, N. (2020). Can WeWork survive its botched IPO? Sage Business Cases, https://dx.doi.org/10.4135/9781529729467.
Saxena, A. (2019, September 26). WeWork, And The Problem With High Valuations in Tech Retrieved from Entrepreneur: https://www.entrepreneur.com/en-au/news-and-trends/why-wework-and-otherovervalued-technology-companies-are/340040#:~:text=A%20recent%20CNBC%20story %20said,to%20the%20company%20being%20overvalued.