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> There is nothing fundamentally wrong with WeWork's core product. You have to justify this for a company that has just entered bankruptcy. I suppose it depen
by qeternity 3y ago
> There is nothing fundamentally wrong with WeWork's core product.
You have to justify this for a company that has just entered bankruptcy.
I suppose it depends on how you define “core”. But even if you take the most conservative definition and call their core product “office space” even that market has been thrown into massive turmoil.
There is plenty wrong with WeWork’s core product and much of what made it popular also made it unprofitable.
- marcosdumay 3y agoThat phrase mostly means that the company is profitable, but it's RoI is smaller than the interest rate on its debit. For having really nothing wrong with the company, it needs to be able to scale profitably too, by having a RoI that is larger than the interest on its assets. The first part is clearly true for WeWork. On that strict sense, the company is quite alive, and its creditors would lose by closing it down. On the second sense, well, I don't think anybody can really say.
- potatopatch 3y agoProfitable before considering the alternative of a guaranteed return at a higher rate is unprofitable, people were just confused (or imprecise about an irrelevant distinction) when the interest rate was near 0.
- datadrivenangel 3y agoIt's still profitable, it's just not financially savvy. Getting paid 50k as a software engineer is still positive income, just unsavvy compared to getting paid 150k.