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jekoei9

6 karma · joined September 13, 2019

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jekoei9··on WeWork considers IPO valuation of as low as $10B
I think a big perception issue in the general public that the money people are chafing against after doing their homework is that WeWork isn’t a tech company.

Economically they’re more like a b&m retailer, where the shelf space being leased is for workers, not mannequins and clothes.

Their reach to individual pockets is orders of magnitude smaller. Big clients can abandon them as a supplier in a few weeks time to setup a new office.

WeWork does not have the long term emotional buy-in potential like an Apple or Facebook. It’s a business to business business. Not going to hook a billion individual users on their gadgets and services.

There’s a non-zero chance the property market implodes, and shifts to remote workers seem very likely to expand. Still need phones and software. Not downtown offices with cucumber water.