As WeWork’s board wrestles with the company’s future, the options on the table are shrinking. The cash that WeWork’s parent company We Co. has to spend freely would dwindle from about $1.9 billion to $400 million by next March if it doesn’t raise new outside funds and keeps spending at a similar pace, according to an analysis by The Information.
The cash projections underline the We Co.’s tenuous financial position as its CEO, Adam Neumann, faces possible ouster. Prospective public investors have been unreceptive to WeWork’s plans to tap the public markets for more money, forcing the company to slash its proposed valuation and then delay the IPO altogether. If Neumann is pushed out, it is unlikely WeWork will go public this year, but the company could raise more money privately. A new CEO may have an easier time raising money from investors—and would also likely take action to cut costs to give WeWork more time to raise cash.