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There is a business. Long-term real estate leases that then sublease the space short term is an established business model. It just doesn't trade at the same mu
by the_watcher 7y ago
There is a business. Long-term real estate leases that then sublease the space short term is an established business model. It just doesn't trade at the same multiples.
- mlthoughts2018 7y agoThis seems like a nearly completely unrelated point.
- the_watcher 7y ago> I think this assumes there’s some inner core of WeWork that is worth saving. It seems directly related to your first sentence, doesn't it?
- mlthoughts2018 7y agoNo. The general viability of subleasing as a business is not meaningfully related to the points about whether a subset of WeWork’s current corporate entity can produce a viable business.
- the_watcher 7y agoYes, it is. It is, quite literally, the actual business part of WeWork.
- mlthoughts2018 7y agoNo, WeWork is a certain brand and corporate entity. For example, reputation problems may mean that reducing operations to this smaller scale subleasing strategy would not succeed for WeWork. Or similarly, the profit level may be too smal for the investors to care, given projections of how long it would take to get their money back. You’re missing the point. WeWork is in a position where it likely cannot cut operations and shrink into a smaller scale version of the same business model.