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WeWork Accepts SoftBank Takeover Offer

reuters.com

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Re: WeWork Accepts SoftBank Takeover Offer

#31

Post by unlinked_dll »

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…

It's not as simple as "these jobs wouldn't have existed anyway!"

People plan their lives around their projected income, including salary/benefits/equity. With WeWork going down, people aren't just losing their current income, but their future income, and the opportunity cost from working anywhere else instead of WeWork.

The man acted borderline fraudulently to investors, and the market responded once it was in the open. He was running a pump and dump scheme while skimming off the top, and now they're paying him 1.7 billion in severance while people are being laid off with worthless options, lost salary, and a black mark on their resume.

Re: WeWork Accepts SoftBank Takeover Offer

#32

Post by xkjkls »

AlexandrB wrote: post #28
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…

We work took more than $12 billion in funding and is now worth around $8 billion. I could create a more valuable company by taking the $12 billion in investment and putting it into a vault. Then I'd still have ~$4 billion left over for lavish parties celebrating my success.

Of the $12 billion in funding he personally took $2 billion of it.

Re: WeWork Accepts SoftBank Takeover Offer

#34

Post by x0x0 »

unlinked_dll wrote: post #31
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…

It's not as simple as "these jobs wouldn't have existed anyway!" People plan their lives around their projected income, including salary/benefits/equity. With WeWork going down, people aren't just losing their current income, but their future income, and the opportunity cost from working anywhere else instead of WeWork. The man acted borderline fraudulently to investors, and the market responded once it was in the op…

And (IMO) more than borderline fraudulently to employees.

As a startup founder, shit like this poisons the environment both for investment and for hiring employees. When people make choices about where to work, stuff like Theranos and WeWork is distinctly not helpful. It gives our industry a patina of fraud.

Re: WeWork Accepts SoftBank Takeover Offer

#35

Post by xkjkls »

SirensOfTitan wrote: post #26
untog wrote: post #10

Earlier quoted context omitted.

[removed]

I strongly dislike WeWork, even may have issues with its fundamental business model, but it's difficult for me to understand how someone could label it as a failure. WeWork is not Theranos: they have a product offering that works well for a lot of businesses.

A single product offering doesn't make a sustainable business. Ultimately, for it to work for these businesses, they need to prove that they can sustain the business model without capital injections.

Re: WeWork Accepts SoftBank Takeover Offer

#36

Post by gyrgtyn »

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…

Maybe the people that did the work should capture some of that wealth?

Re: WeWork Accepts SoftBank Takeover Offer

#37

Post by xkjkls »

misiti3780 wrote: post #11
nickpinkston wrote: post #7

Earlier quoted context omitted.

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

It depends on how you define "fraud". It was definitely run with a lax definition of truth.

Re: WeWork Accepts SoftBank Takeover Offer

#38

Post by akfanta »

birdyrooster wrote: post #22
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 didn’t create a very valuable company. It’s deeply in the red (the opposite of what you are claiming). Those people could’ve had better career paths without having to bail from WeWork. Other jobs did exist due to record unemployment numbers. That is why it is terrible. It’s a waste of an opportunity given to a guy who is a human shaped locust.

> He didn’t create a very valuable company. It’s deeply in the red (the opposite of what you are claiming).

Unfortunately, in this day and time, sometimes company's value has very little to do with profit or even revenue.

Re: WeWork Accepts SoftBank Takeover Offer

#39

Post by lotsofpulp »

birdyrooster wrote: post #22
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 didn’t create a very valuable company. It’s deeply in the red (the opposite of what you are claiming). Those people could’ve had better career paths without having to bail from WeWork. Other jobs did exist due to record unemployment numbers. That is why it is terrible. It’s a waste of an opportunity given to a guy who is a human shaped locust.

Clearly someone thinks it’s valuable given that they are paying for it.

Re: WeWork Accepts SoftBank Takeover Offer

#40

Post by xkjkls »

neural_thing wrote: post #23

What I don't understand is why Softbank didn't just buy the bonds and take control of the company during a restructuring. Would've been much cheaper, no need to pay Neumann anything.

Partly to probably save face on all of their other investments in the Vision Fund. They still have a number of other companies in their portfolio that they hope to one day take public, and compounding this disaster wouldn't be helpful to them
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