Author Topic: WeWork Valued at 35 Billion  (Read 3135 times)

JanSvenda

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Re: WeWork Valued at 35 Billion
« Reply #10 on: June 15, 2018, 01:51:34 AM »
This comes to mind - If you owe the bank $100 that's your problem. If you owe the bank $100 million, that's the bank's problem

The same applies to WeWork's landlords - https://www.bloomberg.com/news/articles/2017-12-06/wework-bets-london-s-costly-offices-won-t-be-bitten-by-brexit

Focused on Building Walker's Manual 2.0 - https://jansvenda.com/otc/ Feel free to email me at overthecounter@protonmail.ch

My favorite investment? Buying a house for the price of the bricks.


Spekulatius

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Re: WeWork Valued at 35 Billion
« Reply #11 on: June 15, 2018, 08:15:55 AM »
Shame on me, I thought that WeWork was a tech company, and its just a glorified landlord.

Where is the plug for the bathtub?
To be a realist, one has to believe in miracles.

notorious546

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Re: WeWork Valued at 35 Billion
« Reply #12 on: June 15, 2018, 08:38:33 AM »
I think he is losing it.

Jurgis

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Re: WeWork Valued at 35 Billion
« Reply #13 on: June 15, 2018, 09:22:43 AM »
I think he is losing it.

You mean Masa Son?

Yeah, some of his investments are head scratchers.

Then, Vision Fund is not (just) his (Softbank's) money.

Then, Vision Fund structure is pretty funky and Softbank could be bag holder.

Then, some of his exits are pretty great.
"Before you can be rich, you must be poor." - Nef Anyo

LongHaul

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Re: WeWork Valued at 35 Billion
« Reply #14 on: June 17, 2018, 05:51:16 AM »
High probability WeWork's investors are totally insane.  $35b for what - losses?  No competitive advantage, likely long term leases and dependent on stupid VC funding bubble. 

Tesla is similar.  Insane market cap for losses with Icarus at the helm. 

It is a totally insane time in so many areas.  Irrationality rules and the craziest part is that people think this is now normal.  It is like a blackhole of thinking.

« Last Edit: June 17, 2018, 05:28:53 PM by LongHaul »
This is a friend (not myself) who is a very capable consultant for oil and gas investing. 

Deep Drilling Insights
www.deepdrillinginsights.com

DTEJD1997

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Re: WeWork Valued at 35 Billion
« Reply #15 on: June 17, 2018, 08:21:55 AM »
Hey all:

We Work has been around for a while now, about 8 years.  They've got about 300 locations.  They have about 2,000 employees.  This is not some crazy startup in it's infancy.

We Work will probably work well in NYC & LA.  It also probably works well in large cities, say those of 1MM+ residents.  However, would We Work do well in Toledo OH?  I am skeptical of that.

So I guess what I am getting at is that if We Work is not profitable now...when ARE they going to be profitable?

Then, if they DO get profitable, just how profitable will they be?  Say they raise rents, cut expenses & get things together, and they only wind up making a few million a year?

35 Billion market cap seems just "silly".  Of course, maybe making a profit is not the goal here?

longinvestor

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Re: WeWork Valued at 35 Billion
« Reply #16 on: June 17, 2018, 08:27:43 AM »
High probability WeWork's investors and totally insane.  $35b for what - losses?  No competitive advantage, likely long term leases and dependent on stupid VC funding bubble. 

Tesla is similar.  Insane market cap for losses with Icarus at the helm. 

It is a totally insane time in so many areas.  Irrationality rules and the craziest part is that people think this is now normal.  It is like a blackhole of thinking.
+1

Weve been here before. Well see how the movie ends. Tides come and tides go. Whos swimming naked?

LC

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Re: WeWork Valued at 35 Billion
« Reply #17 on: June 17, 2018, 04:36:32 PM »
What about a business model like Uber or Lyft. WW gives landlords a branded platform to attract customers. Landlords provide certain standards of service (minimum sq. footage, internet access, desk space, coffee etc.). WW takes a cut when clients book.
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DTEJD1997

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Re: WeWork Valued at 35 Billion
« Reply #18 on: June 17, 2018, 09:51:01 PM »
Hey all:

I am just thinking about WW valuation...

I wonder how much the company is being valued at on a per square foot basis?  Might it even be higher than the actual value of the real estate that they lease?

If so, than I would think that is a pretty sure indication that valuation has gotten "silly".

johnny

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Re: WeWork Valued at 35 Billion
« Reply #19 on: June 18, 2018, 12:59:33 AM »
14M sqft as of April '18, giving us a very clean $2,500/sqft valuation, before community adjustments of course.