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> It never had that much value, it just made it look like it did for long enough to get people to invest in it at vastly inflated prices. A lot of "Silicon Valley success" fits this model too.
And the sunlight of high interest rates will purge the businesses that have no effective way of making money.
The article makes out like WeWork lost 47Bn over the last 5 years. No! It was probably worth 0 when the first IPO blew up. The only thing that kept it alive was Japanese face saving.
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If wealth is not destroyed but transferred, where does it go after an earthquake?
I said losing money doesn't destroy wealth. Destroying a city absolutely does.
This was always the weird thing about WeWork, after the collapse of it's ridiculous valuation people were like "Well, it's still a business, similar to IWG, it has some value". But the truth is no, the only thing WeWork had was a series of liabilities. They had signed a bunch of agreements to rent office space long term at a high price. The valuable part of IWG is that they have rental agreements with buildings that…
Now he is with Marc Andreessen (another hokey) in Saudi raising more money for the next hot air balloon.
What a delightful grift.
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It never had that much value but it has taken $22 billion of perfectly valuable money and set it on fire: "WeWork has raised a total of $22.2B in funding over 23 rounds." https://www.crunchbase.com/organization/wework/investor_fina...
In fairness they must have spent at least $10B on truly amazing interior design and designers. At least, I hope so. In earnest, I've never seen a bad WeWork interior, and I'm glad those folks got the work.
This was always the weird thing about WeWork, after the collapse of it's ridiculous valuation people were like "Well, it's still a business, similar to IWG, it has some value". But the truth is no, the only thing WeWork had was a series of liabilities. They had signed a bunch of agreements to rent office space long term at a high price. The valuable part of IWG is that they have rental agreements with buildings that…
Which means there’s not as much buy long sell short as you’d expect, because they’re just competing directly with other leasers.
This was always the weird thing about WeWork, after the collapse of it's ridiculous valuation people were like "Well, it's still a business, similar to IWG, it has some value". But the truth is no, the only thing WeWork had was a series of liabilities. They had signed a bunch of agreements to rent office space long term at a high price. The valuable part of IWG is that they have rental agreements with buildings that…
What is crazy to me is that Adam Neumann came out of this thing about a billion dollars richer. Now he is with Marc Andreessen (another hokey) in Saudi raising more money for the next hot air balloon. What a delightful grift.
edit: to be serious... there's certainly a lot of difficulty in achieving what he did no matter the failure, but when we use the word work to compare an employee worker and a ceo owner, let's be more specific with what we mean. we all understand work here and we talk about its structures day in day out. a ceo's day to day work has you running memeified mental contortions to understand how it translates into customer or employee value. their duties have more to do with the operations and growth of a business in a competitive landscape. this isn't "work to produce", it's work to manage and grow an organization's marginal returns and to seek monopolization in market in various ways as far as the law permits. I personally don't have the same casual respect for these two categories of work in terms of their social worth and am skeptical when people talk of them as equally comparable when talking about things like respectability, social good, whose participation is necessary to produce something, etc
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Elizabeth Holmes should've picked an easier industry than healthcare considering Adam Neumann was selling hot air and made out like a fucking thief.
In Adam’s defense he created what’s actually an excellent product. I’m a happy WeWork customer it’s a great experience as a customer. Things would be a lot different for Holmes if that’s what she did.
It never had that much value, it just made it look like it did for long enough to get people to invest in it at vastly inflated prices. "Renting offices to work in" was never going to be a silicon valley style success, because it just can't scale that way.
Explain why. It’s literally Uber for offices. It could’ve worked if managed right.
It’s like Hertz raising money on short term rental possibilities but all they do is lease cars to people long-term.
As the other poster said, it’s kind of like how some percentage of AWS just uses it as a dumb server and probably they’d be better off just renting bare metal.