Author Topic: WeWork Valued at 35 Billion  (Read 7774 times)

Gregmal

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Re: WeWork Valued at 35 Billion
« Reply #40 on: Today at 09:01:51 AM »
LOL so this is all just proving my point! I don't care if they blow up, or lose money, or cook their books...I just want to know how something like this occurs!

Where TF is anyone who sees any value/utility to this as an investment??? It might be fueled by Softbank, but they arent the ONLY ones propping up this valuation(at least to my knowledge). How does this happen? Its a total enigma to me because the consensus for EVERYONE Ive ever talked to thinks this thing is one giant piece of shit.


cherzeca

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Re: WeWork Valued at 35 Billion
« Reply #41 on: Today at 09:33:10 AM »
LOL so this is all just proving my point! I don't care if they blow up, or lose money, or cook their books...I just want to know how something like this occurs!

Where TF is anyone who sees any value/utility to this as an investment??? It might be fueled by Softbank, but they arent the ONLY ones propping up this valuation(at least to my knowledge). How does this happen? Its a total enigma to me because the consensus for EVERYONE Ive ever talked to thinks this thing is one giant piece of shit.

I think WE's model actually makes sense, insofar as they are an intermediary or "underwriter" of office building space.  the current model of leasing agents leasing space with renovation credits is ripe for disruption.  what is crazy is its valuation, and WE has taken on so much leasehold ownership risk that it is hard to see how this survives even a small economic pullback.  but some people like to go big or not at all, and many investors are a sucker for the big sizzle
« Last Edit: Today at 11:42:15 AM by cherzeca »

LongHaul

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Re: WeWork Valued at 35 Billion
« Reply #42 on: Today at 02:42:46 PM »
LOL so this is all just proving my point! I don't care if they blow up, or lose money, or cook their books...I just want to know how something like this occurs!

Where TF is anyone who sees any value/utility to this as an investment??? It might be fueled by Softbank, but they arent the ONLY ones propping up this valuation(at least to my knowledge). How does this happen? Its a total enigma to me because the consensus for EVERYONE Ive ever talked to thinks this thing is one giant piece of shit.


There were hundreds or thousands of companies like this in the dot.com bubble.  Growing revenues and huge losses that had minimal scale effects.  It was total insanity.  It was a frenzy though and speculators kept throwing money into it until it all blew up.  Funny enough there are copycats of Wework.  One day the funding window will shut for speculative garbage and many will fail.





DTEJD1997

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Re: WeWork Valued at 35 Billion
« Reply #43 on: Today at 04:38:36 PM »
LOL so this is all just proving my point! I don't care if they blow up, or lose money, or cook their books...I just want to know how something like this occurs!

Where TF is anyone who sees any value/utility to this as an investment??? It might be fueled by Softbank, but they arent the ONLY ones propping up this valuation(at least to my knowledge). How does this happen? Its a total enigma to me because the consensus for EVERYONE Ive ever talked to thinks this thing is one giant piece of shit.


There were hundreds or thousands of companies like this in the dot.com bubble.  Growing revenues and huge losses that had minimal scale effects.  It was total insanity.  It was a frenzy though and speculators kept throwing money into it until it all blew up.  Funny enough there are copycats of Wework.  One day the funding window will shut for speculative garbage and many will fail.

I would suggest that there might have been a business model to sell out to WeWork.  If you look at the number of companies they have acquired through the years, it is quite a bit.  Please see:

https://pitchbook.com/news/articles/wework-has-acquired-more-than-20-companies-in-the-run-up-to-its-ipo

Putting together rented, flexible space is not rocket surgery.  Pretty simple model.