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This company will never achieve profitability, it will have burned through literally Billions of investment money. It will have done this whilst buying its own
by Traster 7y ago
This company will never achieve profitability, it will have burned through literally Billions of investment money. It will have done this whilst buying its own brand off the CEO, self-dealing from the CEO and literally buying a wave machine for the CEO. It's going to absolutely crush the landlords that rented to them.
...And the CEO is going to walk away with $700m cash.
- theflyinghorse 7y agoSeems like a smart guy!
- benjaminclark 7y agoWeWork never achieving profitability does seem entirely possible, maybe even the most likely outcome. However, I'm not sure that leads to the conclusion that it will crush their landlords. All of those landlords are sophisticated parties who could understand the counterparty risk involved in their choice of tenant. They should be prepared to deal with making money from WeWork for the time being and then finding a new tenant. With regard to Neumann walking away with $700m, I've got to say if you are going to make a bunch of money off schmuck investors, it would be hard to find a list of investors I have less sympathy for than the Vision fund investors.