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Comment by Animats | Hacker News Reader

Until WeWork pulled this, few people knew WeWork was in trouble. Now everyone on HN does, which includes many WeWork investors and customers. Expect press coverage in a few days.

Streisand effect, people. The coverup is worse than the problem.

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Are they definitely in trouble? There seems to be a lot of bias on both sides, and no clear indication either way?

They probably assume they are in trouble: “To launch a taboo, a group has to be poised halfway between weakness and power. A confident group doesn't need taboos to protect it.” http://www.paulgraham.com/say.html

Looks like it.[1] "An example The Information gives is that of a 20-year lease signed in New York’s financial district, on which WeWork got over a year of free rent. This free rent, however, was not spread out over the length of the lease, as is usually standard accounting practice. Instead, it was plugged straight into the current numbers, increasing near-term profits."

WeWork leases real estate on long term leases and subleases it on short-term ones. If occupancy drops, they're in big trouble, caught between declining revenue and fixed lease costs.

[1] http://www.businessinsider.com/weworks-financial-projections...

I haven't dug through their data or financials, but I work across the street from a wework and occasionally I go over and play some ping pong with friends. Their rent seems a little pricey, but it is ALWAYS packed with people in offices and at tables. I have multiple friends (3 or 4 different companies) that are all happily renting there. If other cities are anything like Portland I don't see how they are in trouble at all. Im actually glad wework has terms of service like this and gave them an 30 minute eviction notice.

Density does not equal profitability.

Umm it does if you know what the rates are to be there? Check back in 6 months and see how they do after their first round of churn?

Guessing you work at Lytics!

haha nice! Yeup! :-)

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