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He wins either way. He sold some of his WeWork stock, bought buildings with the proceeds, and then had WeWork sign leases with them. If WeWork folds, he still o
by thesausageking 8y ago
He wins either way. He sold some of his WeWork stock, bought buildings with the proceeds, and then had WeWork sign leases with them. If WeWork folds, he still owns the buildings and can sign new tenants. Before it does, the faster it expands, the more often he can do this, and the more money he can make.
That's the conflict of interest. WeWork shareholders want WeWork to build a great business and eventually IPO, but it maybe better for him personally if WeWork simply grows as fast as possible at any cost by doing things like signing expensive leases it can't make the unit economics work for.
- achillesheels 8y agoVery elegantly worded, thank you.