Source: Zero Hedge
T Rowe Price trounced WeWork in a Securities and Exchange Commission (SEC) filing on Thursday, calling its investment in the shared office space startup a “debacle.”
The filing said WeWork is a “terrible investment” and has been nothing more than “outsized headaches and disappointments.”
T Rowe’s Mid-Cap Growth Fund, with offices in Baltimore City and Owings Mills-Reisterstown, Maryland, said their investment with WeWork began in 2014.
It noted that SoftBank made aggressive investments in the startup and pushed valuations higher, which ignored its advice on decreasing the startup’s growth expansion across the world.
“They took our advice for a few months, but new investors soon arrived who convinced management to put its foot back on the accelerator,” T Rowe said in the filing.
It appears T Rowe figured out that something was amiss with the startup, even dating back to 2017. The investment bank started offloading its shares, but when it came to selling a large block, WeWork’s management rejected the sale in 2019. Shortly after, the startup’s valuation collapsed, and here is what the bank said in response:
“Massive losses soon followed, but the CEO promised profitability was just over the horizon. We did not take him at his word, and we
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