WeWork’s List of Potential Conflicts Adds to Questions Ahead of IPO
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Re: WeWork’s List of Potential Conflicts Adds to Questions Ahead of IPO
#2We have a bunch of upcoming actual tech IPOs coming ahead, like Cloudflare, that provide a useful and valuable service. 'We' is just the left over husk that the VCs are trying to get sold off because the founder took the value out already.
Re: WeWork’s List of Potential Conflicts Adds to Questions Ahead of IPO
#3With so much bad publicity, it seems likely WeWork's IPO is dead in the water. I'm surprised anyone's still willing to underwrite it.
The interesting question is going to be what questions will now get asked of SoftBank Vision Fund if any by it's investors. Going by the Theranos example probably nothing but raising capital for their next fund may also be dead in water after so many of their high profile investments have had issues.
Re: WeWork’s List of Potential Conflicts Adds to Questions Ahead of IPO
#4With so much bad publicity, it seems likely WeWork's IPO is dead in the water. I'm surprised anyone's still willing to underwrite it. The interesting question is going to be what questions will now get asked of SoftBank Vision Fund if any by it's investors. Going by the Theranos example probably nothing but raising capital for their next fund may also be dead in water after so many of their high profile investments h…
What does it mean to underwrite an IPO? Isn't it caveat emptor? What is being unwritten?
Re: WeWork’s List of Potential Conflicts Adds to Questions Ahead of IPO
#5Show of hands... Who is throwing shade on We while being a tenant?
Re: WeWork’s List of Potential Conflicts Adds to Questions Ahead of IPO
#6With so much bad publicity, it seems likely WeWork's IPO is dead in the water. I'm surprised anyone's still willing to underwrite it. The interesting question is going to be what questions will now get asked of SoftBank Vision Fund if any by it's investors. Going by the Theranos example probably nothing but raising capital for their next fund may also be dead in water after so many of their high profile investments h…
What does it mean to underwrite an IPO? Isn't it caveat emptor? What is being unwritten?
The underwriter guarantees that the company will raise a certain amount of capital, by agreeing to take up the shares themselves if nobody else does, in exchange for a cut.
https://en.wikipedia.org/wiki/Underwriting#Securities_underw...
Re: WeWork’s List of Potential Conflicts Adds to Questions Ahead of IPO
#7Earlier quoted context omitted.
What does it mean to underwrite an IPO? Isn't it caveat emptor? What is being unwritten?
The underwriter guarantees that the company will raise a certain amount of capital, by agreeing to take up the shares themselves if nobody else does, in exchange for a cut. https://en.wikipedia.org/wiki/Underwriting#Securities_underw...
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Re: WeWork’s List of Potential Conflicts Adds to Questions Ahead of IPO
#8Show of hands... Who is throwing shade on We while being a tenant?
I did know some friend who were tenants five years ago but today....no one.
Why? Because here are so many co-working spaces that have popped up over the last few years. There is no moat or barrier to entry other than the capital to lease a place and set it up. These new co-working places also tend to be cheaper.
You can see the net effect on their S-1 filing where their per-desk revenue is slowing and their growth rate is slowing in markets where they have existing locations. The only way they can grow at a decent pace is to open new locations in new markets and that is very very capital intensive.
Re: WeWork’s List of Potential Conflicts Adds to Questions Ahead of IPO
#9Show of hands... Who is throwing shade on We while being a tenant?
What's good for customers and what's good for shareholders are very different things. WeWork having an infinite number of locations for you to use your membership at is great for you as a customer. It's pretty bad for shareholders, though, when the bottom falls out of the market and WeWork is stuck in leases for locations that nobody goes to.
I think a lot of the IPO criticism comes from that way of thinking. So I don't think it's bad to "throw shade" at that business model while still being a customer. WeWork is taking all the risk out of real estate for you, the customer. That's good for you, but maybe bad for them.
Re: WeWork’s List of Potential Conflicts Adds to Questions Ahead of IPO
#10Show of hands... Who is throwing shade on We while being a tenant?
I work in a Wework and I don't understand why it should by valued higher than any other office real estate company. They offer exactly the same as the other coworking spaces in my city, but are a bit more expensive.