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WeWork had so many excesses, like paying 100% commission to real estate agents. Softbank can cut out such nonsense, not just the tequila and private jets. Soft
by paulsutter 7y ago
WeWork had so many excesses, like paying 100% commission to real estate agents. Softbank can cut out such nonsense, not just the tequila and private jets.
Softbank also has full access to the company’s financials and will be in a position to restructure. It’s safe to say they are a lot better informed than we are.
- acchow 7y ago> like paying 100% commission to real estate agents. Why did they do this?
- ratww 7y agoTo grow faster and disrupt the market. For a while it was more than a simple commission: it was 100% of the revenue for a whole year. They were also offering one-year free rent to new customers. Source: https://outline.com/yCcgS5 https://outline.com/yCcgS5
- carty76ers 7y agoThat has to be the most ridiculous thing I’ve ever heard, since Enron paid their employees bonuses for unprofitable deals.
- chii 7y agowe'll take a loss on each sale, and make up for it in volume!
- DuskStar 7y ago"100% of revenue from the year as commission" and "rent is free for the first year" sounds like the perfect combination, though. If not likely to result in your real estate agents sending more things to you in the future.
- hanniabu 7y agoIt makes sense for Adam. Schmooze the real estate agents with WeWork money so they find you nice deals and get you priority bids, buy the property at this nice discount, lease the property to WeWork. He's winning all around, spend money that's not yours to get equity that is yours.
- C1sc0cat 7y agoRelated party deals We Works previous C level execs had interests in the property We Work took leases in.