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Some are speculating that it is a way for them to re-negotiate leases, given what is currently happening with office space rents it could come out stronger. ed

Some are speculating that it is a way for them to re-negotiate leases, given what is currently happening with office space rents it could come out stronger. edit: Also, given that startup investments are way down right now, tech is in a recession and there are recessionary tail winds this is a great way to get out of leases to downsize to a smaller footprint. Either way I don't have their stock or any ties to them and all of this could be wrong, but it is an interesting theory.

4death4 3y ago
Some also speculated that Ryan Cohen and Carl Ichan were going to save BBBY in a sweetheart deal that would make bagholders who got in at $30/share whole despite the pennies-per-share valuation. Bagholders never lose hope. Even if "We" comes out ahead, the equity holders will be wiped out.
- lgleason 3y ago
  I don't own any of their stock, so I don't have a dog in this fight.
- kristopolous 3y ago
  Apparently they're down 99.8% from their IPO ... some of those crypto-currency rug-pulls had better returns. Sometimes now is the right time to move in ... but I'm typing this from an apartment so don't listen to me.
rasz 3y ago
Arent they leasing from former ex CEO Neumann? https://therealdeal.com/new-york/2023/09/12/adam-neumann-in-talks-to-lease-at-former-wework-building/ https://therealdeal.com/new-york/2023/09/12/adam-neumann-in-...
- Nursie 3y ago
  Yeah, this whole murky area smacks to me of blatant fraud - get massive investment in a company you create, use the valuation to get personal loans against your stake in the company, then use those loans to buy real-estate which you lease back to the company. Oh, and you keep personal ownership of 'We' as a trademark, so they have to lease that too. And then, when it all starts to crumble, walk away with a multi-hundred-million dollar exit package. I can't imagine how this guy still walks free and isn't being sued into the ground by investors.
  - kevin_thibedeau 3y ago
    Laser sharks in the wave pool keep them away.
typescrip0 3y ago
I heard the same thing on the all-in pod
CPLX 3y ago
Of course they are. This is sort of exactly why chapter 11 exists. Doesn’t mean they’ll be successful of course.
hn_throwaway_99 3y ago
> Some are speculating that it is a way for them to re-negotiate leases. People aren't "speculating". WeWork has said outright that is exactly what they're doing, and that is the entire purpose of Chapter 11 bankruptcy, to allow a company to shed some debt, and in return equity holders lose everything and some debt holders take stakes in the reorganized company.
- lgleason 3y ago
  All part to the casino which is the stock market. Buyer beware.
  - nradov 3y ago
    Right. Buyers should be careful to only buy stocks that go up.
    - lgleason 3y ago
      Or consider a different type of investment if they don't want the risk. The low interest rates drove a lot of people into the stock market that would have otherwise chosen more conservative investments. It also drove high valuations for some companies that make no sense. Sadly the market is like a casino with how many stocks are valued and what drives a stock up or down. One one hand if you bet the right way you can make a lot of money, but if you bet wrong you can also lose a lot.
      - brightlancer 3y ago
        What you wrote is mostly true if you're talking about long running money losers, particularly tech companies. It's almost entirely false if you're talking about a business that's turning a profit, especially over years or (better) decades. Also, there's an obvious difference between day trading and long-term investing.
  - chii 3y ago
    well, luckily, wework is not public, and so only sophisticated buyers are able to buy. Therefore, there's no need for "buyer beware", as if there's some scam going on.
swatcoder 3y ago
Until a company is dissolved, somebody is speculating that everything's part of a plan or that it's all going to turn around. Speculation is armchair effort that helps passive bagholders stay hopeful and that helps savvy traders work out of their positions. I suppose it's a fun curiosity to hear the detail of somone's speculation, but it shouldn't be taken for much and it shouldn't be a surprise that there is some. There always is.

4death4 3y ago

Some also speculated that Ryan Cohen and Carl Ichan were going to save BBBY in a sweetheart deal that would make bagholders who got in at $30/share whole despite the pennies-per-share valuation. Bagholders never lose hope. Even if "We" comes out ahead, the equity holders will be wiped out.

lgleason 3y ago
I don't own any of their stock, so I don't have a dog in this fight.
kristopolous 3y ago
Apparently they're down 99.8% from their IPO ... some of those crypto-currency rug-pulls had better returns. Sometimes now is the right time to move in ... but I'm typing this from an apartment so don't listen to me.

rasz 3y ago

Arent they leasing from former ex CEO Neumann? https://therealdeal.com/new-york/2023/09/12/adam-neumann-in-talks-to-lease-at-former-wework-building/ https://therealdeal.com/new-york/2023/09/12/adam-neumann-in-...

Nursie 3y ago
Yeah, this whole murky area smacks to me of blatant fraud - get massive investment in a company you create, use the valuation to get personal loans against your stake in the company, then use those loans to buy real-estate which you lease back to the company. Oh, and you keep personal ownership of 'We' as a trademark, so they have to lease that too. And then, when it all starts to crumble, walk away with a multi-hundred-million dollar exit package. I can't imagine how this guy still walks free and isn't being sued into the ground by investors.
- kevin_thibedeau 3y ago
  Laser sharks in the wave pool keep them away.

typescrip0 3y ago

I heard the same thing on the all-in pod

CPLX 3y ago

Of course they are. This is sort of exactly why chapter 11 exists. Doesn’t mean they’ll be successful of course.

hn_throwaway_99 3y ago

> Some are speculating that it is a way for them to re-negotiate leases. People aren't "speculating". WeWork has said outright that is exactly what they're doing, and that is the entire purpose of Chapter 11 bankruptcy, to allow a company to shed some debt, and in return equity holders lose everything and some debt holders take stakes in the reorganized company.

lgleason 3y ago
All part to the casino which is the stock market. Buyer beware.
- nradov 3y ago
  Right. Buyers should be careful to only buy stocks that go up.
  - lgleason 3y ago
    Or consider a different type of investment if they don't want the risk. The low interest rates drove a lot of people into the stock market that would have otherwise chosen more conservative investments. It also drove high valuations for some companies that make no sense. Sadly the market is like a casino with how many stocks are valued and what drives a stock up or down. One one hand if you bet the right way you can make a lot of money, but if you bet wrong you can also lose a lot.
    - brightlancer 3y ago
      What you wrote is mostly true if you're talking about long running money losers, particularly tech companies. It's almost entirely false if you're talking about a business that's turning a profit, especially over years or (better) decades. Also, there's an obvious difference between day trading and long-term investing.
- chii 3y ago
  well, luckily, wework is not public, and so only sophisticated buyers are able to buy. Therefore, there's no need for "buyer beware", as if there's some scam going on.

swatcoder 3y ago

Until a company is dissolved, somebody is speculating that everything's part of a plan or that it's all going to turn around. Speculation is armchair effort that helps passive bagholders stay hopeful and that helps savvy traders work out of their positions. I suppose it's a fun curiosity to hear the detail of somone's speculation, but it shouldn't be taken for much and it shouldn't be a surprise that there is some. There always is.