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Some WeWork Board Members Seek to Remove Adam Neumann as CEO

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Re: Some WeWork Board Members Seek to Remove Adam Neumann as CEO

#221

Post by goatinaboat »

cylinder wrote: post #168
crb002 wrote: post #160

Earlier quoted context omitted.

It can work, but they need more anchors. Stripe, Gitlab, ... companies that are remote but have workers prefer to cowork. Economic downturn might actually help them if they can gobble long term low leases. More unemployed also means more consumer base outside big corporate America. Their biggest threat is small mom and pop coworking spaces like Gravitate in DSM. Geoff wouldn't sell for less than a massive premium, an…

Why on earth would stripe pay a middle man like WeWork to manage their office and lease?! Stripe is looking at buying an entire building. I'm pretty sure they can handle a 15 yr lease just fine. And don't need WeWork staff to decide what their office kitchens need.

Companies like to brand offices as their own. Their name on the front, their corporate colours in the decor. WeWork offers the exact opposite of that. No company with its own strong brand will want to subsume that brand to that of their letting agent.

Re: Some WeWork Board Members Seek to Remove Adam Neumann as CEO

#222

Post by goatinaboat »

tyri_kai_psomi wrote: post #115
willwagner wrote: post #33

Earlier quoted context omitted.

I think if you are including coffee shops, dry cleaners, and the rest of small businesses that are self-funded, I agree. If you look at VC backed high tech startups, I don't think that is the norm: https://www.capshare.com/blog/4-key-insights-from-5000-cap-t...

What about non-vc backed high tech startups, which are the by far the majority of tech jobs? (my company, fwiw) We have investors sure, but the two founders retain the control. All of the companies we have acquired were in similar situations. In fact it is precisely not until you get to VC-backed startups where this becomes surprising, such as in the GP comment I was referring to. If you actually make money, have pos…

non-vc backed high tech startups, which are the by far the majority of tech jobs?

Citation very much needed. The majority of tech jobs are not at startups of either kind.

Re: Some WeWork Board Members Seek to Remove Adam Neumann as CEO

#223

Post by goatinaboat »

DebtDeflation wrote: post #140
wpietri wrote: post #85

Earlier quoted context omitted.

I could argue it either way. But I think it's reasonable to suggest that there will always be people who are scammers (or so oblivious that it amounts to the same thing). We've only heard of Adam Neumann because investors gave him billions. SoftBank in particular gave $10+ billion [1], and I understand that's really just Masayoshi Son making those decisions. So I think it's reasonable to give him a lot of the blame f…

> SoftBank in particular gave $10+ billion This is the fundamental conundrum. Softbank has invested a total of $10.65B for a 29% stake in a company that (if valued like the commercial real estate firm it actually is instead of the tech unicorn that it isn't) is probably worth $5-6B if we're being generous. Further complicating matters, We is posting losses and burning cash at an incredible rate and will need addition…

WeWorks next finance round was supposed to be $4Bn IPO money + $6Bn loans contingent on the IPO succeeding. Another SoftBank-sized mountain of cash, which is now looks unlikely they’ll get. It’s interesting that it’s the same amount. Maybe this was SoftBank’s planned exit?

Re: Some WeWork Board Members Seek to Remove Adam Neumann as CEO

#224

Post by dagw »

abakker wrote: post #201
jtonz wrote: post #190

Earlier quoted context omitted.

Isn't that We's end goal though? To get billion dollar companies like Microsoft, Stripe, etc. as tenants. People that don't really want to deal with running an entire building when they can just pay someone else to do it.

That is already available. Ever heard of Cushman and Wakefield?

That is already available.

Of course, but I assume that WeWork offered them a better deal.

Re: Some WeWork Board Members Seek to Remove Adam Neumann as CEO

#225

Post by C1sc0cat »

delfinom wrote: post #217
jtonz wrote: post #190

Earlier quoted context omitted.

Isn't that We's end goal though? To get billion dollar companies like Microsoft, Stripe, etc. as tenants. People that don't really want to deal with running an entire building when they can just pay someone else to do it.

Counterpoint: Google now outrights owns a absurd amount of buildings outright on Manhattan's West Side near SoHo. These big companies have so much money, that they stand to make even more money just holding the damn real estate for all they care if they end up not using it. It's the same as a individuals buy vs. rent scenario for a house. Sure, rent may be cheaper, but there are long term pros just holding the proper…

Which makes sense If you run your own investments / pensions your going to want to have some commercial property investments (normally by having a certain % in funds / REITS)

Re: Some WeWork Board Members Seek to Remove Adam Neumann as CEO

#226

Post by dagw »

ohduran wrote: post #11
moltensodium wrote: post #10

Earlier quoted context omitted.

What company? What was built? It's a money destruction machine, not a business. They have no plans or experiments or research moonshots that they expect to be profitable, ever.

People seem to forget that a lot: losing your shareholder's money isn't a business.

losing your shareholder's money isn't a business.

True, but if you do it right it can be a very successful career.

Re: Some WeWork Board Members Seek to Remove Adam Neumann as CEO

#227

Post by dagw »

goatinaboat wrote: post #221
cylinder wrote: post #168

Earlier quoted context omitted.

Why on earth would stripe pay a middle man like WeWork to manage their office and lease?! Stripe is looking at buying an entire building. I'm pretty sure they can handle a 15 yr lease just fine. And don't need WeWork staff to decide what their office kitchens need.

Companies like to brand offices as their own. Their name on the front, their corporate colours in the decor. WeWork offers the exact opposite of that. No company with its own strong brand will want to subsume that brand to that of their letting agent.

WeWork offers the exact opposite of that.

WeWork offers both services. WeWork will just as happily get you a whole building designed and decorated to your exact specs, as they will provide you with 3 desks paid for by the day.

Re: Some WeWork Board Members Seek to Remove Adam Neumann as CEO

#228

Post by dagw »

delfinom wrote: post #216
wp381640 wrote: post #209

Earlier quoted context omitted.

Because demand might be elastic and you can keep costs closer to utilization and outsource stuff you don't want to do like manage an office Same reason companies pay Google and Amazon for cloud servers

But plenty of "non-WeWork" office space offerings have already been like that for decades. They'll provide janitors, receptionists, etc unless you opt for spaces without it to run your own.

But plenty of "non-WeWork" office space offerings have already been like that for decades.

Cynically, those companies have the downside of needing to make a profit. WeWork strikes me as the sort of company that would happily take a massive loss, just to get to brag that Stripe and Facebook use their services.

Re: Some WeWork Board Members Seek to Remove Adam Neumann as CEO

#229

Post by 19ylram49 »

pythonwutang wrote: post #169

This is just the beginning. Start microwaving some popcorn because this will be quite a glorious train wreck to watch! Hopefully the negative impacts are economically isolated.

My popcorn got cold. This train-wreck is taking too long. The suspense is killing me.

Re: Some WeWork Board Members Seek to Remove Adam Neumann as CEO

#230

Post by rightbyte »

bsder wrote: post #186
rightbyte wrote: post #158

Earlier quoted context omitted.

Uber is also creating real value for its customers.

And Uber could be profitable and create real value for investors. The problem is that, in that case, Uber isn't a unicorn and isn't worth the billions already thrown into it.

Ye, but depends on how much loans Uber has if they can ever be profitable. But in theory yes. Just sack 95% of the RnD departement and raise fare prices untill supply and demand even things out.
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