WeWork parent pulls IPO following pushback: sources • Hacker News Board

Re: WeWork parent pulls IPO following pushback: sources

#261

Post by pbalau » Tue, Sep 17, 2019, 12:23 PM UTC

kelnos wrote: post #218

gumby wrote: post #86

Earlier quoted context omitted.

Your point is quite reasonable in general but the discussion was for Silicon Valley and San Francisco. My GF has worked for Microsoft, Amazon, FB and now Google (and some startups over the years). How? Well they all have big tech offices close to Palo Alto. When she worked for various startups she was an ex-MS, ex-FB etc person. If she'd stayed in Chicago (Northwestern grad), that's unlikely. Of course those companie…

I would still maintain that the parent is correct and there is a large quantity of talented developers in SV who have never worked at FB/Google/MS/etc. I know quite a few of them (and would like to believe I'm talented, too).

A large fraction doesn't not mean "most". 1/4 is a large fraction. 1/10 is still a large fraction. Due to the large amount of people companies like fb, goog, apple etc employ, statistically you should expect that a SV startup on the verge of not being a startup anymore employs some ex-ers. Not having any, will raise questions. This doesn't mean the startup is bad, the answer to said questions might...

Re: WeWork parent pulls IPO following pushback: sources

#262

Post by pbalau » Tue, Sep 17, 2019, 12:25 PM UTC

guiriduro wrote: post #246

ginkgotree wrote: post #13

We Co isn't a tech company. Its a landlord subleasing commercial realestate as short term month to month leases with snazzy furniture. They happen to have a mobile app. Its functionality is so poor they removed the pay snack bar in my SF WeWork because no one could pay through the app. CloudFlare... Now there's a proper tech company.

Isn't a normal run of the mill business that happens to have an app the definition of a startup?

Is Greater Anglia a startup? https://www.greateranglia.co.uk/travel-information/journey-p...

Re: WeWork parent pulls IPO following pushback: sources

#263

Post by DebtDeflation » Tue, Sep 17, 2019, 12:31 PM UTC

mytailorisrich wrote: post #144

weworksmb wrote: post #118

> This target is tied to a $6 billion credit line We Company secured from banks last month, that calls for an IPO to take place by the end of the year and raise at least $3 billion, one of the sources said. > Were the New York-based company to fail to meet this target by the end of the year, it would need to secure alternative funding. Does this mean, its now a ticking time bomb?

It definitely is. When you read this and that Softbank has committed to buy 1/3 of the shares sold at IPO it does sound like it's going to pop sooner than later (that may include the vision fund if WeWork crashes)

I would not be surprised if Softbank's commitment ultimately changes to "we'll buy however many shares we need to buy to ensure the IPO raises at least $3B and the debt covenant is preserved".

Re: WeWork parent pulls IPO following pushback: sources

#264

Post by magashna » Tue, Sep 17, 2019, 12:34 PM UTC

nugget wrote: post #96

pvarangot wrote: post #66

Earlier quoted context omitted.

Well people are actually using the offices so prices will go down if they backrupt but they'll catch up. It would feel like an adjustment and not a bubble bursting.

It's anecdotal but I've been in half a dozen WeWork properties in the last 2 months and I've yet to see one more than 50% occupied. There were a couple buildings in Seattle that seemed almost empty.

But what occupancy % is needed to do well? Considering you could easily pay rent with a 50% time occupancy AirBnB, maybe it's similar to WeWork.

Re: WeWork parent pulls IPO following pushback: sources

#265

Post by sverige » Tue, Sep 17, 2019, 12:35 PM UTC

everythingswan wrote: post #210

OJFord wrote: post #198

Earlier quoted context omitted.

> My opinionated take is that if uber wants to pretend that drivers are not employees and it's just a marketplace then they shouldn't be booking the fare as revenue, just their cut but I'm not an accountant and I don't make the rules. Good point, but Uber literally takes the money through its app, so I don't suppose that would be possible.

Yea, classic case of low vs. high margin businesses. Travel is a great example. You would think sites like Expedia would make a healthy margin on airline tickets. Due to the way it's set up (booking systems, airlines, competition) the actual net per ticket is something like $5 for domestic flights. Last I checked Expedia specifically, most of their revenue was on hotels. Contrast that with a high margin business like…

Revenue is King, margin is Queen.

Re: WeWork parent pulls IPO following pushback: sources

#266

Post by whatok » Tue, Sep 17, 2019, 12:36 PM UTC

mdellavo wrote: post #243

nkoren wrote: post #182

Earlier quoted context omitted.

It's not "Silicon Valley", it's Silicon Valley . As in the show. My wife just started a contract at a new WeWork office in London. The lobby features a giant but non-functional as skateboard ramp, and two DJ booths, both manned (at 9am on a Monday). The bathrooms feature the very latest in digital toilets, but they aren't flushing, and nobody can figure out how to reboot them. At an aesthetic level, this couldn't be…

You nailed it, it's absolute parody. The graffiti in the Broad St. NYC location is cringe inducing. On more than one occasion I've witnessed people omit that their office is based out of a we work location. Just too embarrassing to be associated with them.

Never been there but always thought the copy for the Harlem location was special.

https://www.wework.com/buildings/8-w-126th-st--new-york-city...

>If you’re looking for workspace that revels in uptown funk but gets business done with downtown panache, choose WeWork Harlem.

>Our open and airy shared office at WeWork Harlem embodies the future of workspace while embracing Harlem’s rich cultural history. Inspired by the Harlem Renaissance and how Harlem culture continues to express itself today, we looked to jazz legends like Louis Armstrong, Dizzy Gillespie, and Duke Ellington, and teams like the Harlem Globetrotters for design inspiration. “The Stoop,” for example, a wooden elevated seating area with attached nooks, feels as much like a stage or basketball court as it does a common space—it’s an arena for connection. That’s not to mention the generous natural light, warm wood finishes, and vintage art and furniture. Book a tour today to see what WeWork Harlem can do to help your business sing while staying true to its roots.

Re: WeWork parent pulls IPO following pushback: sources

#267

Post by hef19898 » Tue, Sep 17, 2019, 12:40 PM UTC

bakuninsbart wrote: post #165

echelon wrote: post #82

Earlier quoted context omitted.

Would you work for less if you only had to work Monday through Thursday? Or if you could take sabbaticals at will?

Work environment makes a huge difference. My current job is pretty harmonious among the coworkers, the bosses and team-leaders are all engineers themselves or at least tech-literate. They are also very preoccupied with the welfare of employees and even kept a completely unproductive (bad fit) employee on for half a year to help him score a new job first. The customers are almost always happy with what we produce, and…

Stay as long as it remains like this, these places are few and far between!

Re: WeWork parent pulls IPO following pushback: sources

#268

Post by jhcl » Tue, Sep 17, 2019, 12:41 PM UTC

WeWork is a huge success...for its founders. Neumann reportedly sold over 700 million worth of shares ahead of the IPO.

For some reason every startup nowadays is the next Amazon or Facebook. Poised to become the market leader in their field of expertise. Most of the IPOs are losing big money yearly but the market is happy to support them with billions of dollars. Actions that would make Warren Buffet cringe but could make money if you're lucky.

This invites startups to take advantage of the situation. To me this is one of the dark sides of our society because the ones at the bottom of the pyramid losing their money are you and me saving for our pensions.

Re: WeWork parent pulls IPO following pushback: sources

#269

Post by dd36 » Tue, Sep 17, 2019, 12:43 PM UTC

twic wrote: post #227

OJFord wrote: post #198

Earlier quoted context omitted.

> My opinionated take is that if uber wants to pretend that drivers are not employees and it's just a marketplace then they shouldn't be booking the fare as revenue, just their cut but I'm not an accountant and I don't make the rules. Good point, but Uber literally takes the money through its app, so I don't suppose that would be possible.

Does PayPal count money paid through its app as revenue?

No. Neither does a bank. That’s, for lack of a better term, escrow.

Re: WeWork parent pulls IPO following pushback: sources

#270

Post by dagw » Tue, Sep 17, 2019, 12:47 PM UTC

jhcl wrote: post #268

WeWork is a huge success...for its founders. Neumann reportedly sold over 700 million worth of shares ahead of the IPO. For some reason every startup nowadays is the next Amazon or Facebook. Poised to become the market leader in their field of expertise. Most of the IPOs are losing big money yearly but the market is happy to support them with billions of dollars. Actions that would make Warren Buffet cringe but could…

WeWork is a huge success

Indeed. For all the platitudes otherwise, the vast majority of startup founders do this primarily because they want to become rich. Judging a startup by any other metric is at the end of the day at least somewhat disingenuous.

If all you know about two startups is that in startup 1 the founder exited the company with $10 million in his bank account and in startup 2 the founder exited with $750 million in his bank account, which would judge the bigger success?