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The We Company S-1

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Re: The We Company S-1

#61

Post by Cthulhu_ »

buboard wrote: post #59
dillonmckay wrote: post #43

Earlier quoted context omitted.

The majority of businesses I have worked for, the company leases the building from another company owned by the founders.

doesnt that sound like laundering?

Not really, it sounds like a rainy day fund - a business may be out of business (or out of the building) within ten years, but the building will be around for at least another fifty, retain its value, and provide constant income.

The laundering aspect may have a grain of truth in a way though; instead of having e.g. an investment or sale paid out (and consequently taxed), it's rerouted into buying a building. Why pay I dunno, 50% income tax to get the money right now instead of reinvesting the money and long-term earning a lot more?

Re: The We Company S-1

#62

Post by anilshanbhag »

beager wrote: post #50

I’m really disgusted by how much recent tech IPOs inject pitch deck-style garbage into the S-1 filing, especially this one. I’ve always had a great amount of respect for the mediating nature of the S-1’s dry, candid, and ruthlessly honest assessment of business risks, and even though those things are still there, they’re blown out by marketing photos, full-page charts, and branding. This is basically like putting per…

I for one think those photos / charts are important as otherwise you won't understand how big WeWork is. Couple of days ago I was casually checking Wework locations and was surprised that they have 24 locations in Beijing, 10 in Bangalore, 21 in Tokyo ! They are everywhere.

Re: The We Company S-1

#63

Post by empath75 »

Cthulhu_ wrote: post #61
buboard wrote: post #59

Earlier quoted context omitted.

doesnt that sound like laundering?

Not really, it sounds like a rainy day fund - a business may be out of business (or out of the building) within ten years, but the building will be around for at least another fifty, retain its value, and provide constant income. The laundering aspect may have a grain of truth in a way though; instead of having e.g. an investment or sale paid out (and consequently taxed), it's rerouted into buying a building. Why pay…

For the CEO

Re: The We Company S-1

#64

Post by empath75 »

skinnymuch wrote: post #39
ryaniscool wrote: post #35

According to the prospectus, they lose so much money because they are building out new locations. Their break even point takes about a year for an individual location. So theoretically, they have a path to profitability. I just wonder where they get the cash in the meantime. >$1B/year burn rate, ouch.

Wouldn’t it be from the IPO? If they sell 10% of the company, it should raise billions.

That sounds like a ponzi scheme, not an investment.

Re: The We Company S-1

#66

Post by gizmodo59 »

The executive compensation looks interesting.

I wish they publish the ceo salary before 2018. Is that more for a public perception?

And we see only CFO/Legal and no one else.

Re: The We Company S-1

#67

Post by xiphias2 »

heavenlyblue wrote: post #4
fuzz4lyfe wrote: post #3

Earlier quoted context omitted.

I wonder how that compares to what they tell new hires who are likely taking a haircut for equity in the company

"We have free lunch, a ping-pong table and a VR room with monthly fitness days"

Actually they don't have free lunch, which is quite strange for Silicon Valley companies

Re: The We Company S-1

#69

Post by CaptainZapp »

kgwgk wrote: post #22

“When applying our average revenue per WeWork membership for the six months ended June 30, 2019 to our potential member population of 149 million people in our existing 111 cities, we estimate an addressable market opportunity of $945 billion. Among our total potential member population of approximately 255 million people across our 280 target cities globally, we estimate an addressable market opportunity of $1.6 tri…

Sheesh!

I think I found a company, label it tech and mention in the prospectus my potential customership of 8 billion people.

Do investors actually buy into such bullshit?

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