Fidelity Cut WeWork Valuation to $18.3 Billion Before Hype Faded
- Mutual fund giant reduced its valuation by 34% in March
- The Contrafund cut the value of its stake to $341.6 million
Pedestrians walk past the WeWork Cos. Iceberg co-working space in Tokyo, Japan.
Photographer: Keith Bedford/BloombergThis article is for subscribers only.
Fidelity Investments’ Contrafund, an early investor in WeWork, slashed its valuation of the office-sharing company before Wall Street threw cold water on it.
In March, Fidelity reduced the value of the Contrafund’s WeWork stake by more than a third, according to regulatory filings. That suggested a total market value of about $18.3 billion, compared with $27.9 billion under Fidelity’s previous estimate. Both are based on 338.4 million shares outstanding on a fully diluted basis at the end of last year.