David Solomon of Goldman Sachs & Co.
Patrick T. Fallon | Bloomberg | Getty Images
Goldman Sachs CEO David Solomon says the bank’s stake in WeWork is still profitable, even after the company suffered a number of valuation cuts and now faces a bailout crisis.
“That was an investment we made a number of years ago at a lower valuation,” Solomon told CNBC’s Wilfred Frost on Thursday. “At the current mark, even if it went down from here, we still have a profit in the remaining position.”
WeWork has gone through a vicious cycle of scrutiny in the past few months, as the co-working space provider’s IPO was put on hold while its valuation suffered multiple cuts. WeWork is now poised to run out of money by the middle of next month, with J.P. Morgan and SoftBank in discussions to put together a financing package for the company.
“We’re watching that situation like everybody else and it will be interesting to see, as they re-focus the business, how that business moves forward,” Solomon said.
Solomon also defended WeWork’s model, saying “there is a real business that underlies that.”
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