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WeWork has frittered away $46.7B in value as the stock sinks below ¢50

businessinsider.com

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Re: WeWork has frittered away $46.7B in value as the stock sinks below ¢50

#191

Post by xenospn »

ilrwbwrkhv wrote: post #125
SilverBirch wrote: post #122

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.

If he can keep getting billionaires to give him billions of dollars, I don’t see anything wrong with that. They’re supposed to be professionals.

Re: WeWork has frittered away $46.7B in value as the stock sinks below ¢50

#192

Post by kodah »

Ekaros wrote: post #146
sidewndr46 wrote: post #143

Earlier quoted context omitted.

Depending on your definition of 'success' he may be one of the most successful. After all, he apparently managed to profit off a business that was worth little to nothing.

Is success making lot of money for yourself. Or building a business that in general makes money and world a better place. That is generates societal wealth.

Most businesses do not "make the world a better place". It was a mistake to ever believe that it's realistic that every business can do that and really only served the egos of those who have uttered those words. Most businesses are providing a service or a product, that thing may be useful, but there's a pretty high bar from that point to "making the world a better place".

Re: WeWork has frittered away $46.7B in value as the stock sinks below ¢50

#193

Post by [deleted] »

hef19898 wrote: post #182
leetharris wrote: post #117

Earlier quoted context omitted.

Elon said that when he acquired Twitter it was burning $4 million per day.

If your source would have been Twitters SEC filings, I woupd believe it. By now, I wouldn't believe Elon tellong me it's raining while being soaked in rain, waiting for one the millions of Tesla's robot taxis to pick me up.

[deleted]

Re: WeWork has frittered away $46.7B in value as the stock sinks below ¢50

#194

Post by lvl102 »

pcurve wrote: post #38
lvl102 wrote: post #10

Thank goodness it never made it public (first time around). Can you imagine the capital destruction for pension funds?

It still managed to destroy $25billion the second time around, so I would say plenty of damage has been done. Shame of the investors for giving this sky high valuation through SPAC.

I find it very convenient for the Fed to have kept QE while inflation was flashing red hot just so Wall Street could finish making money off of all these SPAC deals. Only when Wall Street finished, did Fed magically come to senses with inflation. Whole thing is rigged.

Re: WeWork has frittered away $46.7B in value as the stock sinks below ¢50

#195

Post by qwytw »

leetharris wrote: post #117
hef19898 wrote: post #46

Earlier quoted context omitted.

Wasn't Twitter mostly profitable, except for some hugebsttlement with the FCC (?)? Until recently that is.

Elon said that when he acquired Twitter it was burning $4 million per day.

Their net income back in 2021 was -223.32 mil. So only ~0.6 million per day.

The interest payments on the $12.5 billion of debt Musk offloading to its balance sheet to fund his 'purchase' is way more than that.

Basically Musk alone costs Twitter about the same as 4000 - 8000 employees. Which is why he had to fire that many people.. Seems like a great deal.

Not that I mind him running Twitter into the ground it's horrible format/platform for any meaningful communication aside from public single sentence public announcements..

Re: WeWork has frittered away $46.7B in value as the stock sinks below ¢50

#196

Post by anonymouskimmer »

barelyauser wrote: post #156
Ekaros wrote: post #146

Earlier quoted context omitted.

Is success making lot of money for yourself. Or building a business that in general makes money and world a better place. That is generates societal wealth.

Success is personal. If your goal is to increase the amount of wealth for everyone then go for it. With that said, remember the following. While the economy is not zero sum and we can increase the amount of wealth in the world, power is zero sum. Power is finite and very scarce. You can create tremendous wealth and later find out it ended in the hand of a single person. And that person is not willing to share.

> power is zero sum. Power is finite and very scarce.

As technology[1] increases power increases. It is social capital to convince others that is zero sum (holding the number of people constant).

[1] - and here I mean all technology, not what's commonly called 'tech' today.

> You can create tremendous wealth and later find out it ended in the hand of a single person. And that person is not willing to share.

Having a lot of money doesn't mean people have to do business with them. Undoubtedly some will, but you don't have to. It also doesn't prevent others from doing business with made-up currencies (e.g. Ithaca Hours, cryptocurrencies) or through barter.

Re: WeWork has frittered away $46.7B in value as the stock sinks below ¢50

#197

Post by CPLX »

dchftcs wrote: post #80
CPLX wrote: post #55

Earlier quoted context omitted.

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.

Given their losses your rent would have to roughly double for WeWork to have any profit. May I know if the services provided to you are worth that much?

Yes probably.

Also that’s not the only variable in the equation it seems likely there’s at least one expense that could be cut.

Re: WeWork has frittered away $46.7B in value as the stock sinks below ¢50

#198

Post by anonymouskimmer »

dazc wrote: post #185
ninth_ant wrote: post #134

Earlier quoted context omitted.

A single parent working three jobs just to cover rent and food works hard. Grifting hedge funds maybe isn’t easy, but get no sympathy from me for “working hard.” Lots of people work hard.

'A single parent working three jobs just to cover rent and food works hard.' Is this a reality though? I was desperate for work many years ago and all the part-time jobs were optimized for a specific time of the day - say 10 am to 2pm or thereabouts. I can imagine a scenario where someone is holding down 2 jobs but 3, this is hard to comprehend? For context, I should add I am in the UK where there are perverse incent…

> Is this a reality though? I was desperate for work many years ago and all the part-time jobs were optimized for a specific time of the day - say 10 am to 2pm or thereabouts.

> I can imagine a scenario where someone is holding down 2 jobs but 3, this is hard to comprehend?

I only ever had two at a time, but it would have been possible to cobble three together (I effectively did this for a semester as I had two jobs, and was also commuting between two college campuses for classes). I managed 3.5 hours of sleep a night except for the weekend. And got to a point where the third energy drink of the day triggered a feeling of sleepiness.

For a person without a credential:

Early AM) Newspaper delivery or Load line at UPS/FedEX/DHL.

Regular hours) A regular job during the day

Evening hours) Unload line for UPS/FedEX/DHL

Weekends) Babysitting, or whatever.

Sleep) Good luck!

Re: WeWork has frittered away $46.7B in value as the stock sinks below ¢50

#199

Post by [deleted] »

dazc wrote: post #185
ninth_ant wrote: post #134

Earlier quoted context omitted.

A single parent working three jobs just to cover rent and food works hard. Grifting hedge funds maybe isn’t easy, but get no sympathy from me for “working hard.” Lots of people work hard.

'A single parent working three jobs just to cover rent and food works hard.' Is this a reality though? I was desperate for work many years ago and all the part-time jobs were optimized for a specific time of the day - say 10 am to 2pm or thereabouts. I can imagine a scenario where someone is holding down 2 jobs but 3, this is hard to comprehend? For context, I should add I am in the UK where there are perverse incent…

[deleted]

Re: WeWork has frittered away $46.7B in value as the stock sinks below ¢50

#200

Post by sbrother »

xyst wrote: post #118
sbrother wrote: post #68

Earlier quoted context omitted.

Coworking is absolutely still going on. My wife and I go to https://kiln.com/ which is a fantastic option if you are in SoCal or Utah. They seem to be thriving. The workspaces are fantastic, they get us all the benefits of going to a (very nice) office with none of the downsides (we choose when to go, and they're a five minute bike ride from the kids school.) Lots of opportunities to meet other members, network, and…

I’ll never understand why you would want to subject yourself to an office AND pay for that experience. Networking aside (why can’t that be done outside of a co-working environment), I don’t see any benefits. I would rather dump the $3,900 per year into my mortgage or other debt tbh.

And that’s totally fine because unlike a corporate office, the only people there are those who find value in it. In my case, my house is often a circus of kids, grandparents, and caregivers so it’s well worth it to have a place I can escape to work. And if my circumstances change, it can be cancelled in 30 days unlike a long-term CRE lease.

It’s a great service for those of us who value it, and it’s popular enough that it’s not going anywhere. It is not, however, a billion dollar company lol.

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