Goldman Sachs CEO Solomon says the bank’s investment in WeWork is still profitable at this time

Investing

David Solomon of Goldman Sachs & Co.

Patrick T. Fallon | Bloomberg | Getty Images

Goldman Sachs CEO David Solomon says the bank’s stake in WeWork is still profitable, even after the company suffered a number of valuation cuts and now faces a bailout crisis.

“That was an investment we made a number of years ago at a lower valuation,” Solomon told CNBC’s Wilfred Frost on Thursday. “At the current mark, even if it went down from here, we still have a profit in the remaining position.”

WeWork has gone through a vicious cycle of scrutiny in the past few months, as the co-working space provider’s IPO was put on hold while its valuation suffered multiple cuts. WeWork is now poised to run out of money by the middle of next month, with J.P. Morgan and SoftBank in discussions to put together a financing package for the company.

“We’re watching that situation like everybody else and it will be interesting to see, as they re-focus the business, how that business moves forward,” Solomon said. 

Solomon also defended WeWork’s model, saying “there is a real business that underlies that.”

This story is developing. Please check back for updates.

Products You May Like

Articles You May Like

Board gender diversity slowly rising in U.S., KPMG report finds
Taxing The Scholarships Of College Athletes Is A Personal Foul
Here are the biggest analyst calls of the day: Nvidia, Biogen, Kroger & more
Many Americans are drowning in medical debt. Here’s what to know if you need some relief
The Social Security retirement age could go up. Here’s why that change won’t be easy

Leave a Reply

Your email address will not be published. Required fields are marked *