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I am confused about how they could be valued at $47 billion. (Unless they own $46.9 billion worth of real estate.) Let's suppose this company can eventually tu
by impendia 8y ago
I am confused about how they could be valued at $47 billion. (Unless they own $46.9 billion worth of real estate.)
Let's suppose this company can eventually turn a profit (which already seems to be in doubt). I see nothing to prevent competitors from renting out real estate, nor customers from switching. So what then is to stop WeAlsoWork, WeWorkToo, and WeWorkHarder from springing up like mushrooms?
- paxys 8y agoNot really defending WeWork's business model, but you can say the exact same thing about any company ever.
- Traster 7y agoThe argument is network effects, you come to WeWork for the community. It's difficult and capital intensive to attract enough people to build a community so that's their moat. I don't belive it is anywhere near as valuable as they seem to think, but that's their argument.