WeWork Bonds Drop Below Par for First Time Since IPO Filing
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Re: WeWork Bonds Drop Below Par for First Time Since IPO Filing
#2I just listened to the Grubstakers episode on WeWork and the founder. I'm fairly convinced it's all a racket at this point.
Re: WeWork Bonds Drop Below Par for First Time Since IPO Filing
#3It does not seem to be a viable business so this makes sense.
I think that there was some type of hope that access to IPO funding will allow it to continue to search for a viable business model. This path to possible success seems to be dwindling.
If WeWork needs to have a self-sustaining business model in the near term, it could quickly collapse.
I am not sure but will SoftBank and other wealthy investors continue to fund it in its current state?
How much money does WeWork have in the bank? What is its burn rate? Could its loans get called?
Could WeWork have just months or even weeks to live? Will this failure cause investors to get spooked? They already are somewhat spooked because of Uber and Lyft post IPO performance. Thus we may be on the verge of a shift here.
I think WeWork could be the Lehman Brothers of profitless, over-funded unicorns (see: https://en.wikipedia.org/wiki/Lehman_Brothers )
Re: WeWork Bonds Drop Below Par for First Time Since IPO Filing
#4It just seems like WeWork took an existing business model of renting office space, went all VC and gathered a bunch of money and sky high evaluation (toss in some creepy insider dealing) ... and ... that's it.
I know there were some theories on cornering the market, or getting some sort of huge buy in / contracts with companies hiring remote workers but for the most part there's plenty of office space (at least in my area) and remote work that I see rarely involves the hiring company shelling out extra for expensive office space for remote workers.
I wonder what other folks selling office space in the market think about all this? They seem to operate just fine and financially seem to do so with a lot less risk than WeWork.
Re: WeWork Bonds Drop Below Par for First Time Since IPO Filing
#5It does not seem to be a viable business so this makes sense. I think that there was some type of hope that access to IPO funding will allow it to continue to search for a viable business model. This path to possible success seems to be dwindling. If WeWork needs to have a self-sustaining business model in the near term, it could quickly collapse. I am not sure but will SoftBank and other wealthy investors continue t…
I wonder what they sold their initial investors on?
I've heard a lot of theories (cornering the market, the future of remote work) but I don't quite get what WeWork was selling folks on when it came to investing and evaluations that were so high in the first place.
Re: WeWork Bonds Drop Below Par for First Time Since IPO Filing
#6It does not seem to be a viable business so this makes sense. I think that there was some type of hope that access to IPO funding will allow it to continue to search for a viable business model. This path to possible success seems to be dwindling. If WeWork needs to have a self-sustaining business model in the near term, it could quickly collapse. I am not sure but will SoftBank and other wealthy investors continue t…
> It does not seem to be a viable business so this makes sense.
Many businesses that IPO aren't viable, the problem is when the general public figures that out. For instance, snap chat. In no way a viable business, but has plenty of investors thanks to the wall street scam of institutional investors (401ks, etc) buying entire sectors of an exchange. It's a nice scheme to ensure you bail out your 'venture capitalist' friends.
Re: WeWork Bonds Drop Below Par for First Time Since IPO Filing
#7It does not seem to be a viable business so this makes sense. I think that there was some type of hope that access to IPO funding will allow it to continue to search for a viable business model. This path to possible success seems to be dwindling. If WeWork needs to have a self-sustaining business model in the near term, it could quickly collapse. I am not sure but will SoftBank and other wealthy investors continue t…
I wonder what they sold their initial investors on? I've heard a lot of theories (cornering the market, the future of remote work) but I don't quite get what WeWork was selling folks on when it came to investing and evaluations that were so high in the first place.
Growth. Most initial investors have already exited the company thanks to Softbank.
Re: WeWork Bonds Drop Below Par for First Time Since IPO Filing
#8This IPO story is struggling. There have been several recent examples of public confidence in the business model collapsing post IPO, but the WSJ and others are reporting on this so heavily as it looks like we’re now seeing public confidence starting to fall apart before the IPO of an ultra-unicorn. Get your popcorn ready.
Someone might buy these bonds at their deflated prices because WeWork still needs to pay interest on that loan and if its still around will eventually pay back the original loan, but for now this is more evidence of market skepticism of the future health of WeWork financially. People are willing to just take a hit now and get out.
Re: WeWork Bonds Drop Below Par for First Time Since IPO Filing
#9It just seems like WeWork took an existing business model of renting office space, went all VC and gathered a bunch of money and sky high evaluation (toss in some creepy insider dealing) ... and ... that's it. I know there were some theories on cornering the market, or getting some sort of huge buy in / contracts with companies hiring remote workers but for the most part there's plenty of office space (at least in my…
> I wonder what other folks selling office space in the market think about all this?
If I owned a bunch of office space, I'd be exiting now (or would have already exited). I think it's probably like the bitcoin effect: bitcoin got notorious, so all the other coins went up too. IMO, uncoordinated pump and dump.
Re: WeWork Bonds Drop Below Par for First Time Since IPO Filing
#10Earlier quoted context omitted.
I wonder what they sold their initial investors on? I've heard a lot of theories (cornering the market, the future of remote work) but I don't quite get what WeWork was selling folks on when it came to investing and evaluations that were so high in the first place.
Growth. Most initial investors have already exited the company thanks to Softbank.
I get the "hey Softbank is in it" kinda thing, not smart, but I get it.
Growth I don't get. Did they feel they were buying up a lot of undervalued properties and were going to dramatically increase in value somehow?
Office space seems like a mature market and it's not like if I own 3 buildings vs 1000 that there is that much efficiency that growth would get me.