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I’m confused, why would they sell large portions of equity (for billions) if they didn’t plan on spending those billions? So by definition any company that rais

I’m confused, why would they sell large portions of equity (for billions) if they didn’t plan on spending those billions? So by definition any company that raises billions is planning on being unprofitable (by billions) or they wouldn’t raise money right? Companies don’t sell equity for fun, they only do it if they have no other choice (they aren’t profitable yet, or they plan to become unprofitable due to new expansion. For the latter they may be able to raise debt instead of venture capital investment) right?

Nasrudith 8y ago
They don't think it is worth billions or that their value would drop perhaps? I honestly wouldn't be surprised if WeWork did that just to cargo-cult a successful company.That or it involves a plan of "playing dress up as a successful company" given the sheer "B ark feel" to the place. Other plausible explanations are that WeWork is an embezzlement scheme, fraud, or money laundering operation since nothing about the place makes sense.