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At it's core, WeWork's business model seems solid and every time I've been in one, it's been at least close to full. If the main driver of the losses is the ini
by AmericanBlarney 8y ago
At it's core, WeWork's business model seems solid and every time I've been in one, it's been at least close to full. If the main driver of the losses is the initial investment in acquiring and remodeling the real estate, then they're in fine shape - they could always pull an Amazon and stop expanding for a quarter to show just how profitable they could be. I'd think that's the most likely scenario but, if not, I can't imagine why anyone would throw good money after bad.
- toomuchtodo 8y agoIf the economy slows at all, I assure you all of those WeWork memberships are going to get cancelled and they’re going to get squeezed.
- RobLach 8y agoWeWork has a major problem in that they signed a vast number of real estate contracts during the financial crisis 10 years ago at fire sale prices that are now expiring and will require renegotiation. Unfortunately for WeWork they are a gentrification agent which means those leases are going to be negotiated at rates which would be a multiple of what they were originally at.