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WeWork sues SoftBank over canceled $3B tender offer

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Re: WeWork sues SoftBank over canceled $3B tender offer

#61

Post by arrosenberg »

dheera wrote: post #52
alasdair_ wrote: post #46

Earlier quoted context omitted.

>Conflict-of-interest is a human-invented notion Literally every legal concept is a human-invented notion.

Sure, but to me, ALL human-invented notions are subject to interpretation and change over the times. We had kingdoms, slaves, and eye-for-eye punishment before and we largely don't have those concepts today in the developed world. The same is true for conflict-of-interest, fiduciary duty, and today's version of capitalism. If I had said "we don't need slaves" 400 years ago, I would have been downvoted like crazy. And…

> Why can't a human play against itself and get better as well?

You can, it's called practicing. You are just limited by your resources and imagination. Playing with or against others accelerates your improvement curve.

Re: WeWork sues SoftBank over canceled $3B tender offer

#62

Post by csmiles »

JumpCrisscross wrote: post #19
llsf wrote: post #13

I read that Wework had $4B in the bank at the beginning of the year. Also they are actively trying to reduce their own rent up to 30% from their landlords. And at the same time Wework gives up to 50% discount to its own large tenants, so they can stay during this hard time. No idea how long it can operate like that. If Wework had to crash, I am concerned for the whole US commercial real-estate. Wework is renting so m…

> WeWork is renting so many square feet WeWork is big. CRE is huge. WeWork is not even among the top ten largest lessees in America.

WeWork may not account for a huge fraction of the entire US CRE market, but I’m sure there are office landlords with significant exposure.

Two articles from Sept 2019 suggest WeWork was, at least at that time, the largest private office tenant in NYC, London, and Downtown Chicago.

https://www.bloomberg.com/news/articles/2019-09-27/wework-la...

https://www.chicagotribune.com/business/ct-biz-wework-postpo...

Re: WeWork sues SoftBank over canceled $3B tender offer

#63

Post by H8crilA »

jacquesm wrote: post #56
H8crilA wrote: post #45

Earlier quoted context omitted.

I just mean I'm cheering for this lawsuit. Every money taken away from stupid "VC" is a win for the future peace of the economy. And obviously it has a very magnified effect - most exuberant people only want to buy at some kind of "all time high". I.e. taking away $1 from Masa will reduce the "dumb money pool" by many times that dollar.

That would work if it ended in pockets where it can do some good. Having it end up with WeWork is the same as tossing it into an outdoor furnace.

Oh sweet summer child. The Fed has been cranking $1M / second of brand new money for the past 2 weeks... Can't blame you for not seeing just how fucked up the financial system is and how little this WeWork money actually means.

Re: WeWork sues SoftBank over canceled $3B tender offer

#64

Post by tmpz22 »

gullyfur wrote: post #15
code4tee wrote: post #5

Quote: WeWork’s board said that it “regrets the fact that SoftBank continues to put its own interests ahead of those of WeWork’s minority stockholders.” Of course they’re going do to that, it’s called fiduciary duty to their own stakeholders! Such diligence is something WeWork’s board seemed to casually overlook for far too long. At this point why would SoftBank buy WeWork shares that are in all likelihood worth litt…

Has anyone estimated how many months WeWork has until it collapses?

Anecdotally wework had a two month deposit from my former company which they are refusing to refund - my guess is 4 weeks until the civil suits start stacking up, 6 weeks until the executives bail out in Golden parachutes to cushy FANNG positions, and 8 weeks until low level employees are left holding the bag.

Re: WeWork sues SoftBank over canceled $3B tender offer

#65

Post by jacquesm »

H8crilA wrote: post #63
jacquesm wrote: post #56

Earlier quoted context omitted.

That would work if it ended in pockets where it can do some good. Having it end up with WeWork is the same as tossing it into an outdoor furnace.

Oh sweet summer child. The Fed has been cranking $1M / second of brand new money for the past 2 weeks... Can't blame you for not seeing just how fucked up the financial system is and how little this WeWork money actually means.

It should be possible to make your point without gratuitous insults. Especially when you're wrong, then it makes you even more of a dick. Thank you. FWIW you are off-topic.

Re: WeWork sues SoftBank over canceled $3B tender offer

#66

Post by H8crilA »

jacquesm wrote: post #65
H8crilA wrote: post #63

Earlier quoted context omitted.

Oh sweet summer child. The Fed has been cranking $1M / second of brand new money for the past 2 weeks... Can't blame you for not seeing just how fucked up the financial system is and how little this WeWork money actually means.

It should be possible to make your point without gratuitous insults. Especially when you're wrong, then it makes you even more of a dick. Thank you. FWIW you are off-topic.

My point is there's no point in making "good use" of this money against the backdrop of what's currently happening. It's a symbol, at best.

Re: WeWork sues SoftBank over canceled $3B tender offer

#67

Post by jacquesm »

H8crilA wrote: post #66
jacquesm wrote: post #65

Earlier quoted context omitted.

It should be possible to make your point without gratuitous insults. Especially when you're wrong, then it makes you even more of a dick. Thank you. FWIW you are off-topic.

My point is there's no point in making "good use" of this money against the backdrop of what's currently happening. It's a symbol, at best.

Of course there is. The backdrop is like the weather. In the meantime you could fund a lot of start-ups from that money. Now, arguably, SoftBanks' history is less than stellar but still, the chances of them doing something good with that cash strongly outweigh the chances of WeWork doing something good with that cash.

That still leaves your point about the rest of the trillions that have been printed but that is another topic entirely and can be addressed on its own, and likely in a different thread.

Re: WeWork sues SoftBank over canceled $3B tender offer

#68

Post by mronge »

csours wrote: post #27
code4tee wrote: post #5

Quote: WeWork’s board said that it “regrets the fact that SoftBank continues to put its own interests ahead of those of WeWork’s minority stockholders.” Of course they’re going do to that, it’s called fiduciary duty to their own stakeholders! Such diligence is something WeWork’s board seemed to casually overlook for far too long. At this point why would SoftBank buy WeWork shares that are in all likelihood worth litt…

Quoting from Matt Levine: > That is a good little window into mergers-and-acquisitions lawyering. SoftBank’s agreement with WeWork isn’t public, but presumably it says something like “SoftBank can cancel the tender if there are any material government restrictions on WeWork’s business,” but it doesn’t say something like “SoftBank can cancel the tender if lots of customers cancel their WeWork memberships.” The very ro…

That's true but they may be able to cancel the contract based on a force majeure clause because of the global pandemic.

Re: WeWork sues SoftBank over canceled $3B tender offer

#70

Post by beerandt »

mronge wrote: post #68
csours wrote: post #27

Earlier quoted context omitted.

Quoting from Matt Levine: > That is a good little window into mergers-and-acquisitions lawyering. SoftBank’s agreement with WeWork isn’t public, but presumably it says something like “SoftBank can cancel the tender if there are any material government restrictions on WeWork’s business,” but it doesn’t say something like “SoftBank can cancel the tender if lots of customers cancel their WeWork memberships.” The very ro…

That's true but they may be able to cancel the contract based on a force majeure clause because of the global pandemic.

Or a government restriction due to the pandemic, if not the pandemic itself.
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