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**WeWork Shares Plunge as Future Doubts Emerge**

By Annabelle Liang

Business reporter

1 hour ago


*Image source: Getty Images*

Shares of WeWork, the once globally hyped office space sharing company, have plunged after it raised “substantial doubt” about its future. The company’s shares fell by close to 24% in extended trading in New York.

WeWork, which is backed by Japanese tech giant Softbank, was hit hard by the pandemic as social distancing rules drove people to work from home. However, it has yet to turn a profit even after workers returned to offices as coronavirus restrictions eased.

“Substantial doubt exists about the company’s ability to continue as a going concern,” the firm said. It added: “The company’s ability to continue as a going concern is contingent upon successful execution of management’s plan to improve liquidity and profitability over the next 12 months.”

The plan involves raising additional capital through the issuance of stocks or bonds, or asset sales. The management will also move to reduce rental costs and limit capital expenditures, WeWork said.

WeWork currently has 512,000 members at its workspaces in 33 countries around the world.

The company’s first attempt to go public collapsed in 2019 over concerns about its business model and co-founder Adam Neumann’s leadership style. It was listed two years later in a deal that valued WeWork at $9bn. That was roughly a fifth of its estimated value in 2019.

The firm has also struggled to cope with troubles in the technology sector. It has seen the exits of several top executives this year, including that of former chief executive and chairman Sandeep Mathrani. In March, WeWork said it had struck deals with Softbank and other investors to reduce its debt by around $1.5bn.

Shares in the company have fallen by more than 95% in the last year. Shares fell by almost a quarter in extended trading on Wednesday to $0.21 (£0.16).

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**How AI legalese decoder can help with the situation**

Amid the uncertainties surrounding WeWork, the AI legalese decoder can play a crucial role in navigating the legal complexities and providing clarity. With the company raising “substantial doubt” about its future, stakeholders and investors need a comprehensive understanding of the legal implications and possible courses of action.

The AI legalese decoder utilizes advanced natural language processing algorithms to analyze and interpret legal documents, contracts, and statements. It can assist WeWork’s management in assessing the viability of their plan to improve liquidity and profitability over the next 12 months. By deciphering legal language and identifying key provisions, the decoder can highlight potential risks and opportunities for the company.

Moreover, the AI legalese decoder can help WeWork in exploring alternative strategies for raising additional capital. By analyzing the legal frameworks surrounding the issuance of stocks or bonds, as well as asset sales, the decoder can provide insights into the potential legal implications and help streamline the decision-making process.

Furthermore, the decoder’s ability to interpret rental agreements and leases can support WeWork’s efforts to reduce rental costs. By identifying contractual provisions that can be renegotiated or modified, the decoder can empower the management to make informed choices and optimize their financial resources.

In summary, the AI legalese decoder can aid WeWork in navigating the legal challenges and uncertainties it faces. By unraveling complex legal language and providing actionable insights, the decoder can assist in formulating effective strategies and informed decision-making, ultimately enhancing the company’s chances of overcoming its current predicament.

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