WeWork’s Adam Neumann Steps Down as CEO

Post by rwmurrayVT » Wed, Sep 25, 2019, 12:58 PM UTC

mruts wrote: post #334

YPCrumble wrote: post #48

Earlier quoted context omitted.

Is this part of the business model of these large, unprofitable VC-backed companies? Build a valuation to meet the 8.1bn threshold, then sell the shares to passive investors in S&P 500 index funds?

No. The S&P 500 is selected by committe. And it's 6.1bn, not 8.1bn. Mabye that's the plan for the Russell 3000, though. But it doesn't really matter except when the stock gets added to the index. The index funds and ETFs are going to rebalance their positions based on market cap and will not affect the price. These funds could affect the volatility though, since it's conceivable that with a lot of the shares locked u…

Post by JJMcJ » Wed, Sep 25, 2019, 1:56 PM UTC

patio11 wrote: post #426

kevin_thibedeau wrote: post #348

Earlier quoted context omitted.

I've seen a Walgreens that was closed in less than a year because of poor location despite being across the street from a Rite-Aid. They aren't perfect either.

Walgreens will happily close a location and move it across the street to take advantage of a more advantageously shaped curb cut if they can't get the Illinois Department of Transit planner to approve the optimal curb cut from their current location. This is because they have extreme confidence in their ability to assess the business impact of curb cuts. A market commenter who believes that Google is not one of the m…

Post by wonderwonder » Wed, Sep 25, 2019, 2:09 PM UTC

JBSay wrote: post #485

munificent wrote: post #240

Earlier quoted context omitted.

> What's the upside of having a giant corporation owning all coworking spaces, versus having many small and independent small businesses running and operating independent coworking spaces? Advantage to customers? Likely minimal. Advantage to the company itself: economies of scale and, likely more importantly, lack of competition allowing them to increase prices. The very clear trend across all sectors is that compani…

Clearly false as there is no regulation to prevent the formation of very large companies (anti-trust laws don't apply). In fact companies tend toward giant behemoths in part BECAUSE of government regulation. Small companies can't afford the enormous fixed cost of compliance the way large ones can. Regulations are a huge incentive for market consolidation and large corporations love writing new barriers to entry regul…

Post by goatinaboat » Wed, Sep 25, 2019, 2:35 PM UTC

opportune wrote: post #446

DebtDeflation wrote: post #199

Earlier quoted context omitted.

I'm sorry, but while there is some logic to the co-working idea, I don't see any serious demand for co-living. Quite frankly, I find the idea of having on-premise yoga instruction, cafes, bars, shared hot tubs, shared kitchens, etc. so you never have to leave your apartment building (except, presumably, to go to WeWork) to be absurd.

I personally see value in it and could even see myself as a customer, at least to try it for 6-12 months and see what it's like. Sounds like a good way to meet other young people with a bent towards tech That said, I don't know the details of the program so can't speak to its practicality in this instance. But considering it's wework, there's opportunity for a good vertical there. At its face it seems like sound corp…

Post by bengale » Wed, Sep 25, 2019, 2:52 PM UTC

joshpadnick wrote: post #210

I'm sure I'll get downvoted for this, but I actually just signed up to be a (thankfully month-to-month) WeWork customer for a HotDesk today in Phoenix, and it's actually been a pretty great experience: Great space, nice people, reasonable IT, I was up and running and working within 30 minutes of doing my tour. And yes I've had a cup of the famous We Kombucha. This particular location just opened 3 weeks ago and is ap…