Jefferies Results Hit by $146 Million Writedown of WeWork Stake
Members work on laptop computers in a common room at the Embarcadero WeWork Cos Inc. offices in San Francisco, California.
Photographer: Mike Short/BloombergThis article is for subscribers only.
Jefferies Financial Group Inc.’s earnings took a hit from an unlikely source: WeWork’s dropping valuation.
Third-quarter revenue came in below even the lowest analyst expectation Thursday as the company’s merchant banking unit wrote down the value of its investment in We Co. by $146 million. Net revenue fell slightly to $777 million despite increases in both fixed-income and equities trading, Jefferies said Thursday in a statement.