WeWork Inc on Friday said it has adopted a “poison pill” to limit its shareholders from increasing stakes, which would make it difficult for the company to use its net operating loss (NOL) carryforwards to reduce tax.
As of Dec. 31, 2021, WeWork had about $6.9 billion of U.S. federal NOLs and $6.6 billion of state NOLs that could be available to offset its future federal taxable income and state taxable income, the company said in a statement.
Last month, WeWork struck deals to cut debt by about $1.5 billion and extend the date of some maturities in a bid to preserve cash as the flexible-workspace provider feels the heat of mass layoffs on its business.
The company, which offers workstations, private offices and customized floor plans, had enjoyed a pandemic-driven shift to flexible work outside traditional offices, but is now gearing up for a potential fallout from a likely economic downturn.
The Tax Asset Preservation Plan is intended to reduce the likelihood of such an “ownership change” at WeWork by deterring any person or group from acquiring beneficial ownership of 4.9% or more of company’s outstanding Class A common stock, the company added.
Source : Reuters
The funding will primarily support a new embedded deferred payment offering that enables a larger…
Private employment rose by 38,000 jobs last month. U.S. private payrolls increased moderately in August,…
The Atlas tracks Europe's clean-tech transformation, showing how adoption, investment and industrial change are unfolding…
Future EU long-term care demand hinges more on health trajectories than ageing alone, making prevention…
Standard portfolio theory predicts strong investor responses to changes in the equity premium, but empirical…
Climate change and the transition to net zero are reshaping the macroeconomy, with important implications…