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

Re: WeWork parent pulls IPO following pushback: sources

#271

Post by dd36 » Tue, Sep 17, 2019, 12:48 PM UTC

twic wrote: post #229

IMTDb wrote: post #190

Earlier quoted context omitted.

You could switch, sure. But would you ? You would be losing : - Message history - Files that have been shared - Integrations / bots / ... - Plus you would need to setup everyone again, create channels, ... Slack goal is to be cheap enough that it does not represent a major cost for the company and integrated enough that moving would be a pain.

My company switched from Slack to Mattermost, and then back to Slack. We either did all these things, twice, or lived without them. Switching is not something you'd do on a whim, but it's not really difficult either.

Why back?

Re: WeWork parent pulls IPO following pushback: sources

#272

Post by hef19898 » Tue, Sep 17, 2019, 12:54 PM UTC

Traster wrote: post #134

miguelmota wrote: post #48

WeWork is a real estate company and not a software company. They don't have any worthy propriety tech and their business model is collecting rent. How they were once valued at 47 billion just straight up doesn't make any sense.

I don't think big investors are that stupid. They don't think an office rental business is a tech business, that's just a really convenient story to tell. Because if it's NOT a tech company, you have to look at why it's worth so much and come to the conclusion that all the fundamentals point to. It's worth a huge premium because it's getting a monopoly. My suspicion is that WeWork thinks that they can use their scale…

I think the reason is softbank and other large late pre-IPO investors trying to push WeWork as a tech IPO. Once they dump their shares on the public market I guess they don't care that much again.

Doesn't change the fact WeWork is an overvalued real estate company that believes it is a tech company.

Re: WeWork parent pulls IPO following pushback: sources

#273

Post by hef19898 » Tue, Sep 17, 2019, 12:56 PM UTC

drevil-v2 wrote: post #254

benj111 wrote: post #156

Earlier quoted context omitted.

You need to dress it up a bit, like this: Rpicup.com, the global leader in non augmented reality solutions, leveraging modern technologies to anticipate trends in the digital/reality interface. Rpicup brings printing, or as we like to say rpinting(tm) in to the 21st century. Rpicups: Print your way to world peace. Edit: I am of course available for consulting work, and to ensure my neutrality in such matters will onl…

I don't see blockchain or AI/ML in there??

Isn't that for after the pivot and or a Series B to C?

Re: WeWork parent pulls IPO following pushback: sources

#274

Post by hef19898 » Tue, Sep 17, 2019, 1:01 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)

So basically it depends on the founder / CEO to raise money to keep the burn rate up to keep the evaluation up. Stops working when the narrative changes.

Re: WeWork parent pulls IPO following pushback: sources

#275

Post by Hallucinaut » Tue, Sep 17, 2019, 1:02 PM UTC

dd36 wrote: post #271

twic wrote: post #229

Earlier quoted context omitted.

My company switched from Slack to Mattermost, and then back to Slack. We either did all these things, twice, or lived without them. Switching is not something you'd do on a whim, but it's not really difficult either.

Why back?

As someone contemplating the move from Slack, I'm also very interested in this response

Re: WeWork parent pulls IPO following pushback: sources

#276

Post by code4tee » Tue, Sep 17, 2019, 1:13 PM UTC

thedudeabides5 wrote: post #137

Does anyone know what happens to the liqPref (and hence the subordinated equity shares of early employees) if they IPO below their $12bn liquidation pref?

Depends entirely on contractual details likely not broadly known. Those details have not been broadly reported or discussed. In general in a generic sense it’s quite common for investors (those writing actual cheques into the business) to be made whole again and then some before options holders or others get to come to the table. First dibs on the rewards goes to those that took the most risk.

Reports out now are saying the likely market cap of the company is less than the cash raised by the company. Speaking generally that’s typically a beyond ugly situation for non-investors hoping their stake/options is going to make them some $. Think about it... it wouldn’t be right for some employee equity/options holder to get money while investors lose money.

Haven’t seen much written about the details specific to We/WeWork, but given all the crazy governance issues identified to date with its corporate structure it wouldn’t be surprising if such clauses are very complex.

Re: WeWork parent pulls IPO following pushback: sources

#277

Post by 0Sam » Tue, Sep 17, 2019, 1:13 PM UTC

whatok wrote: post #266

mdellavo wrote: post #243

Earlier quoted context omitted.

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…

I work at this location and I can tell you that although I've never read the description that you posted above (sounds very.. cringey) people are putting the common areas to good use, and this applies extra to the stoop. You've always got people sitting around it, getting comfortable and working on their laptops, I think it's something that WeWork has done done well at this location.

Re: WeWork parent pulls IPO following pushback: sources

#278

Post by GCA10 » Tue, Sep 17, 2019, 1:14 PM UTC

kelnos wrote: post #216

GCA10 wrote: post #62

Earlier quoted context omitted.

On the merits, yes, We is not a tech company. But bear in mind that the company has gone to extraordinary lengths to cloak itself in the unicorn-tech narrative. It masquerades as a platform for other services; it ascribes its losses to a work-setting variant of the Uber fast-growth strategy; it draws parallels to Airbnb's disruption of the hotel business, etc. Yes, Silicon Valley's smartest minds may see through it a…

The general public's impression of WeWork isn't really relevant here, though. It's mainly the opinion of institutional investors that matters. And if they've had the wool pulled over their eyes and believe We to be a tech company, then... well, I'm even more worried than I thought for our financial system. Actually, my feeling here is that institutional investors have realized that We isn't a tech company. That's why…

All good points. At the same time, there's a bit of "No True Scotsman" going on. https://en.wikipedia.org/wiki/No_true_Scotsman

Re: WeWork parent pulls IPO following pushback: sources

#279

Post by DebtDeflation » Tue, Sep 17, 2019, 1:22 PM UTC

CPLX wrote: post #225

Traster wrote: post #134

Earlier quoted context omitted.

I don't think big investors are that stupid. They don't think an office rental business is a tech business, that's just a really convenient story to tell. Because if it's NOT a tech company, you have to look at why it's worth so much and come to the conclusion that all the fundamentals point to. It's worth a huge premium because it's getting a monopoly. My suspicion is that WeWork thinks that they can use their scale…

> It's worth a huge premium because it's getting a monopoly. A monopoly on real estate ? Yeah no.

The commercial real estate market in just the US is valued at $16 TRILLION. It's absurd to even be discussing a monopoly.

Re: WeWork parent pulls IPO following pushback: sources

#280

Post by delfinom » Tue, Sep 17, 2019, 1:27 PM UTC

kelnos wrote: post #220

0x28469 wrote: post #193

Earlier quoted context omitted.

Download their online recipes and do a rand on them. It's 100% about convenience. They offer nothing more than you picking up your own food. Plus they ship as much packaging as food so it's probably far from being the most ecological solution.

The problem with that approach is that often they include ingredients in very small quantities that most people won't have, and buying the ingredient yourself requires getting a container with 1000x the amount you need. Even if it's cheap, people balk at that. But yes, the packaging is insanely wasteful, not to mention the ecological cost of shipping itself. I definitely cooked more often when I had a HelloFresh subs…

>The problem with that approach is that often they include ingredients in very small quantities that most people won't have, and buying the ingredient yourself requires getting a container with 1000x the amount you need. Even if it's cheap, people balk at that.

This is more of a problem with how fucked American supermarkets are and how much food wasted is generated not just by too much being packaged. I go out of my way to shop at Asian supermarkets because at least I can buy alot of produce individually and not massive bags of shit that'll spoil before I can eat it like American supermarkets push.