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WeWork to List Shares on Nasdaq, Make Governance Changes

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Re: WeWork to List Shares on Nasdaq, Make Governance Changes

#41

Post by amoitnga »

hisnameismanuel wrote: post #36
amoitnga wrote: post #29

From a point of view of a regular human, how is WeWork good for me? I'm generally opposed to 1 company to "rule them all", and I would like to see giants to be broken down. In case of say, Amazon, at the very least being so huge may allow (arguably) for cheaper prices and almost everything in one place, delivered conveniently. suppose that's true. How one company owning a lot of real estate is good for me? The way I…

Just as AWS made it easy to spin up a server, WeWork is making it easy to spin up a desk. This matters for companies with teams scattered around the world. If there's a WeWork in a certain city, it's super easy for us to get our team onboarded there - the brand is consistent, we know our people are going to be comfortable and happy. Say what you will about their ridiculous financials, the product itself is good.

Being able to rent a desk is very convenient, true.

But I don't think comparison to aws is fair. AWS can be scaled.

Renting out part of the office won't benefit in any way from the same company having offices in multiple cities.

Do you think, one landlord, owning offices in 10 cities be more efficient (better) than 10 separate landlords?

Re: WeWork to List Shares on Nasdaq, Make Governance Changes

#42

Post by s3r3nity »

webninja wrote: post #33
s3r3nity wrote: post #30

Earlier quoted context omitted.

> They aren't doing anything other than using huge sums of money to generate more money. Isn't that the function of _any_ company in capitalism? (Excluding, possibly, non-profits)

No. This is rent seeking. https://en.m.wikipedia.org/wiki/Rent-seeking

I think you're being too literal.

I was referring to a mechanism of taking in investment or capital to generate a return on that investment through some positive generation process (prototypical example: manufacturing.)

But you're technically right: if you're just using money to steal / suck resources away from somewhere else, with no net positive or even a net negative on the whole, then I agree with you.

Re: WeWork to List Shares on Nasdaq, Make Governance Changes

#43

Post by rdtwo »

vadym909 wrote: post #2

I can guess (however unlikely it may be) how Uber might some day make money through its monopoly power or use of autonomous cars and justify its valuation. I just can't imagine how WeWork could continue growing and turn a profit if it can't do it in this booming economy. The freelancers and small businesses that use it are likely the first to end their memberships and work from home or coffee shops.

It can easily turn a profit as long as it stops growing. Somehow they managed to con the building owners into leasing to shell companies which means they can break any of their leases at any time by shutting down the shells. As such once the growth phase ends they will shut all the unprofitable offices and can hum along as 3% growth real eastate company and feed the founders heirs forever or at least till the leases expire.

Re: WeWork to List Shares on Nasdaq, Make Governance Changes

#44

Post by wwthrowaway »

skinnymuch wrote: post #38
wwthrowaway wrote: post #35

Converting a capital intensive and inflexible office lease commitment to monthly payments and the ability to scale is very useful to many companies that manage their real estate prudently. WW could be successful without all the rah-rah about changing the world. Like Uber, I’m sure they could afford to shed a few thousand employees (who were hired for growth) and continue to run a more sustainable business.

Sustainable as in much more low key and not trying to grow a lot? How would that sit with investors? No less Softbank’s $9B investment into it and 30% ownership.

Sustainable in the sense of better managing the 500+ locations they’ve already got and easing off the ridiculous growth for a while.

I don’t see Softbank have the option to continue feeding capital into the company so they might need to reassess their end-game with this investment. The alternative is possibly a spectacular crash into bankruptcy.

Re: WeWork to List Shares on Nasdaq, Make Governance Changes

#45

Post by camjohnson26 »

GoodGOYIM wrote: post #28
swarnie_ wrote: post #24

Earlier quoted context omitted.

Please come back and post your position on IPO day so we can all have a good laugh.

I never understood why people hate the successful.

Anyone can build the appearance of a successful company by taking out a lot of debt and burning it slowly. Most people are hating because it doesn’t seem sustainable.

Re: WeWork to List Shares on Nasdaq, Make Governance Changes

#46

Post by kd0amg »

chadash wrote: post #40
vadym909 wrote: post #2

I can guess (however unlikely it may be) how Uber might some day make money through its monopoly power or use of autonomous cars and justify its valuation. I just can't imagine how WeWork could continue growing and turn a profit if it can't do it in this booming economy. The freelancers and small businesses that use it are likely the first to end their memberships and work from home or coffee shops.

The freelancers and small businesses that use it are likely the first to end their memberships and work from home or coffee shops. Coffee shops are great places to get work done for a few hours. But stay in one for a whole day and you start to get weird looks unless you are buying coffee continuously. And once you buy enough $5 coffees to justify sitting there for a day, you might as well be in a WeWork. Working from…

If you live in a downtown area, you likely don't have the space for a proper setup.

When the money's tight, being short on space doesn't necessarily keep you from doing it anyway. Hot desking at WeWork would cost more than half my rent.

Re: WeWork to List Shares on Nasdaq, Make Governance Changes

#47

Post by ProAm »

hisnameismanuel wrote: post #36
amoitnga wrote: post #29

From a point of view of a regular human, how is WeWork good for me? I'm generally opposed to 1 company to "rule them all", and I would like to see giants to be broken down. In case of say, Amazon, at the very least being so huge may allow (arguably) for cheaper prices and almost everything in one place, delivered conveniently. suppose that's true. How one company owning a lot of real estate is good for me? The way I…

Just as AWS made it easy to spin up a server, WeWork is making it easy to spin up a desk. This matters for companies with teams scattered around the world. If there's a WeWork in a certain city, it's super easy for us to get our team onboarded there - the brand is consistent, we know our people are going to be comfortable and happy. Say what you will about their ridiculous financials, the product itself is good.

Ive only been to 2 WeWork facilities but both were dirty and loud. Im not sure about other cities but the product was very underwhelming/disappointing for the price.

Re: WeWork to List Shares on Nasdaq, Make Governance Changes

#48

Post by GoodGOYIM »

camjohnson26 wrote: post #45
GoodGOYIM wrote: post #28

Earlier quoted context omitted.

I never understood why people hate the successful.

Anyone can build the appearance of a successful company by taking out a lot of debt and burning it slowly. Most people are hating because it doesn’t seem sustainable.

Yes but what about Uber?

Re: WeWork to List Shares on Nasdaq, Make Governance Changes

#49

Post by danpalmer »

Huxley-Luke wrote: post #37

I don't understand the hype around WeWork. Nothing it does is innovative or different. Its strategy and product can be easily replicated by anyone with enough cash to burn. It seems less like a business and more like a rent-seeking scam to loot money from investors until they've sold to the greatest fool they can find.

I think the very fact that we’re talking about it proves they are innovative, but I’d argue the innovation isn’t quite what they’d like to think it is.

This market is a tough one, with much competition. The fact we’re discussing this at all shows that they’ve managed to grow to become a recognisable name. Even if that’s just because of tons of VC cash, at least the VCs thought them worthy of investment.

Why? I think it’s a cultural change. Existing players market to companies, WeWork markets essentially to employees, it markets to the person who actually goes into the office and sits there every day, rather than to the balance sheet.

With their flexibility on leases, they pass the bar of cheap enough for the business considerations and do well enough for people’s minds, but with the trendy design, nice kitchens, beer on tap, plants, and effortless meeting room AV they appeal to people’s hearts. No one else does this. Is it worth it? Maybe, maybe not, we’ll find out in the long term.

This is innovative, and this creates meaningful hype. I believe they’ve got more right than you may be giving them credit for. Is it a long term business? Probably not this alone, there are loads of issues with WeWork as a business. I wouldn’t touch the stock.

Re: WeWork to List Shares on Nasdaq, Make Governance Changes

#50

Post by hisnameismanuel »

amoitnga wrote: post #41
hisnameismanuel wrote: post #36

Earlier quoted context omitted.

Just as AWS made it easy to spin up a server, WeWork is making it easy to spin up a desk. This matters for companies with teams scattered around the world. If there's a WeWork in a certain city, it's super easy for us to get our team onboarded there - the brand is consistent, we know our people are going to be comfortable and happy. Say what you will about their ridiculous financials, the product itself is good.

Being able to rent a desk is very convenient, true. But I don't think comparison to aws is fair. AWS can be scaled. Renting out part of the office won't benefit in any way from the same company having offices in multiple cities. Do you think, one landlord, owning offices in 10 cities be more efficient (better) than 10 separate landlords?

Thanks for the thought. I'm not concerned with the efficiency of their business - I'm concerned with the efficiency of _my_ company. WeWork has removed a big headache for us.
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