Shuli Ren, Columnist

Only JPMorgan Can Fill WeWork's $47 Billion Hole

By offering the struggling unicorn a $5 billion rescue, it may seem like the bank is throwing good money after bad. It can’t afford to do otherwise.

October 15, 2019 at 5:50 AM UTC

By Shuli Ren

Shuli Ren is a Bloomberg Opinion columnist covering Asian markets. A former investment banker, she was a markets reporter for Barron’s. She is a CFA charterholder.

The weight of a $47 billion bubble on his shoulders.
Photographer: Andrew Harrer/Bloomberg

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When JPMorgan Chase & Co. reports its earnings Tuesday, one question investors will want answered is what the bank is doing with WeWork. The disgraced unicorn, whose valuation went from $47 billion to less than $15 billion in a matter of weeks, could run out of money as soon as next month.

Just like the rest of the junk-rated corporate world, WeWork is looking to dig out of its cash-flow woes with more credit. The company is currently weighing two options: a roughly $5 billion financing package led by JPMorgan, and selling a controlling stake to SoftBank Group Corp. WeWork prefers the bank rescue, Bloomberg News reported.