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> Lots of businesses, particularly real estate businesses, feature self-dealing and family control galore. American corporate law goes out of its way to avoid c
by deogeo 7y ago
> Lots of businesses, particularly real estate businesses, feature self-dealing and family control galore. American corporate law goes out of its way to avoid criminalising stupidity.
Self-dealing, as in how the founder leases his building to his firm, or how he owned and sold the We trademark to his own firm? I wouldn't call that 'stupidity'. In fact, it sounds very smart, for the founder. And unethical bordering on criminal.
- blankcheque 7y agoI've heard it's not uncommon to separate low-multiple assets and high-multiple assets into different structures. In this case, the builds are the low-multiple assets and they're being separated out from the high-multiple asset which is the management company.
- taurath 7y agoImagine a huge conglomerate who has the ability to take revenues in more than one division - you claim the revenues in whatever the market treats as having a higher multiple, thus inflating your “growth” story and your stock price. To financial folks it looks like you’re shedding old businesses and making a new hit, but in reality it’s a finance trick.
- csande17 7y agoWouldn't the buildings usually be owned by, like, a subsidiary of WeWork, or a holding company that also owned WeWork, or something?
- lonelappde 7y agoWeWork is the junk company that only exists to funnel investor money to the founder via his other company.