WeWork rollercoaster

I’m personally really enjoying the rollercoaster story of WeWork taking place around us. Will be very interesting to see if their IPO goes ahead as planned or whether a few changes are in order beforehand!

Are you keen to jump into their IPO when it does eventually happen or are you going to take a spectator seat with me? :popcorn: :sunglasses:

https://www.bloomberg.com/news/articles/2019-09-18/london-deals-for-wework-buildings-falter-amid-ipo-market-fallout?srnd=premium-europe

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An emphatic “Hell no” to participation for me unless valuation starts somewhere around the $10bn mark. Think that means its popcorn time! :popcorn::cup_with_straw::eyes:

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Better get a large popcorn for the team :joy: it’s definitely one I’m keen to put in the watchlist but as for investing, their business model has a fair amount of risk. If they increase their rate of buying property / moving over to management agreements like the hotel industry has, rather than commercial lease agreements, it will become a lot more interesting :popcorn: :office:

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Could we see WeWork IPO with a new CEO? :face_with_hand_over_mouth:

Well it turns out no IPO at all… For now :roll_eyes:

It is always disappointing to see a founder lose control of their business, especially one that has become so successful under their leadership. Unfortunately greed isn’t always good in the business world, much to Gordon Gecko’s disgust i’m sure. :wink:

And it continues!

Expected to run out of cash by mid-November! This won’t happen as investors have too much invested already but what a journey the past few months have been for WeWork…

A hard lesson for many future companies looking to IPO!

$47 Billion > Under $8 Billion… In about a month!

https://www.bloomberg.com/news/articles/2019-10-18/softbank-is-said-to-eye-wework-rescue-valuation-below-8-billion

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WeWork is now 80% owned by Softbank, sad to see a founder pushed out of his own company but at least he’s taken $1.7 Billion with him to soften the blow.

A financially comfortable fall from grace! :joy:

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Possibly the most legal Ponzi scheme in history? Or just out-of-touch investors. Gotta feel for employees with now-worthless stock options while Adam Neumann walks from the company with a truck load of cash.

My initial thoughts (above) were this is a roughly $10bn company for the time being. Good to see that somewhat validated with the approx $8bn value now attached to the business. The business model still works, in my humble opinion!

Think the next few years will be about validating this $8bn valuation and then g(row)ing from there…

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And here’s a nice summary of what happened with WeWork so far:

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That was a really interesting watch, thanks for sharing @bartosz.w!

I hadn’t realised he’d even voted himself out as CEO, I guess he saw the hard line removal coming anyway. A very interesting story though and a lesson for any new business who raises big money without the correct framework and plan in place.