WeWork Accepts SoftBank Takeover Offer • Hacker News Board

Re: WeWork Accepts SoftBank Takeover Offer

#11

Post by misiti3780 » Tue, Oct 22, 2019, 5:14 PM UTC

nickpinkston wrote: post #7

vkou wrote: post #6

Earlier quoted context omitted.

Well, he did spend 12 billion dollars building a 8 billion dollar company, so surely, he deserves some reward for his efforts..?

Yea, and Elizabeth Holmes should've gotten richer for her "innovation" and "job creation"... /s Let's not reward charlatans. Here's how we used to treat them: https://en.wikipedia.org/wiki/Jeffrey_Skilling#Legal_proceed...

I'm not defending Adam N, but Jeffrey Skilling committed out right fraud, as far as i know, no one has accused that of happening at We Work

Re: WeWork Accepts SoftBank Takeover Offer

#12

Post by hef19898 » Tue, Oct 22, 2019, 5:14 PM UTC

untog wrote: post #10

vkou wrote: post #6

Earlier quoted context omitted.

Well, he did spend 12 billion dollars building a 8 billion dollar company, so surely, he deserves some reward for his efforts..?

[removed]

True! And why would you expect a billionaire to invest some money i to his own company when said billionaire is a serial entrepreneur!

Re: WeWork Accepts SoftBank Takeover Offer

#13

Post by hef19898 » Tue, Oct 22, 2019, 5:15 PM UTC

pashabitz wrote: post #4

If you owe the bank $100, that's your problem. If you owe the (soft)bank $100 million, that's the bank's problem.

In the latter case you also kind of own the bank.

Re: WeWork Accepts SoftBank Takeover Offer

#14

Post by nostromo » Tue, Oct 22, 2019, 5:16 PM UTC

I'm confused as to why this is so terrible.

He created a very valuable company, worth billions of dollars. It makes sense that he should capture some large fraction of that wealth.

Yes, some people will lose their jobs. But it's worth noting that those jobs wouldn't have existed in the first place if he hadn't started the company.

His mismanagement has cost him and Softbank billions, which is appropriate as well.

I say this completely aware of what a shitshow WeWork is.

edit: For context this was a response to https://news.ycombinator.com/item?id=21325431 but the mods detached it for... some reason?

Re: WeWork Accepts SoftBank Takeover Offer

#15

Post by ceejayoz » Tue, Oct 22, 2019, 5:18 PM UTC

nighthawk648 wrote: post #5

untog wrote: post #3

[edit: deleting comment]

What’s more insane is the hundred mill he got after being forced out... such a shame

I know it's basically "go away quietly" money, but the idea of wanting him consulting on anything is kinda hilarious.

Re: WeWork Accepts SoftBank Takeover Offer

#16

Post by birdyrooster » Tue, Oct 22, 2019, 5:18 PM UTC

tibbydudeza wrote: post #9

Softbank ... now offically the Pets.com of 2019.

Personally, I enjoy watching the Saudi Vision Fund money go up in flames. SoftBank is deeply associated with the murderous Mohammad Bin Salman and gets the benefit of his brand.

Re: WeWork Accepts SoftBank Takeover Offer

#17

Post by ianlevesque » Tue, Oct 22, 2019, 5:20 PM UTC

nostromo wrote: post #14

I'm confused as to why this is so terrible. He created a very valuable company, worth billions of dollars. It makes sense that he should capture some large fraction of that wealth. Yes, some people will lose their jobs. But it's worth noting that those jobs wouldn't have existed in the first place if he hadn't started the company. His mismanagement has cost him and Softbank billions, which is appropriate as well. I s…

Did he though? The IPO revealed it to be essentially a scam that failed to fool the public.

Re: WeWork Accepts SoftBank Takeover Offer

#18

Post by nostromo » Tue, Oct 22, 2019, 5:20 PM UTC

tibbydudeza wrote: post #9

Softbank ... now offically the Pets.com of 2019.

Except 250 times bigger.

(Pets.com max market cap was $400 million. Softbank's Vision Fund is 100 billion.)

Re: WeWork Accepts SoftBank Takeover Offer

#19

Post by Barrin92 » Tue, Oct 22, 2019, 5:21 PM UTC

nostromo wrote: post #14

I'm confused as to why this is so terrible. He created a very valuable company, worth billions of dollars. It makes sense that he should capture some large fraction of that wealth. Yes, some people will lose their jobs. But it's worth noting that those jobs wouldn't have existed in the first place if he hadn't started the company. His mismanagement has cost him and Softbank billions, which is appropriate as well. I s…

>He created a very valuable company, worth billions of dollars

he created something that may very well lose its investors billions of dollars without ever turning a dime of profit. What the company is evaluated as on paper by people increasingly disconnected from reality isn't really meaningful.

I'm not really sure what the market function or social function is of rewarding people with billions of dollars who create money-losing machines. If anything it's an indication that some part of the system is increasingly broken.

Re: WeWork Accepts SoftBank Takeover Offer

#20

Post by achow » Tue, Oct 22, 2019, 5:22 PM UTC

untog wrote: post #3

[edit: deleting comment]

Reuter is giving better picture of how this is being worked upon.

SoftBank has agreed to give him (Neumann) $500 million to refinance his personal loans, as well as pay him a $185 million consulting fee. SoftBank will additionally launch a tender offer for up to $3 billion to acquire WeWork shares from existing investors and employees.. Neumann’s ability to tender his shares will be capped at $970 million.

https://www.reuters.com/article/us-wework-softbank-group/wew...