WeWork

Those generally don't have tens of billions of dollars in VC investments that can evaporate in one go.

But WeWork isn't a tech company, they just rent office space to /mostly/ tech companies.

Anyways, they're doomed. They somehow turned the old scheme of the man selling shovels to the gold prospector unprofitable.

Yep, I am an analyst

>it may bring the entire tech industry down
hopefully

I'm an accountant but dabbled in it when Shkreli used to stream lessons on looking at quarterly reports etc. I wonder if it's possible to short WeWork. Problem is the timing I guess, impossible to really know when exactly it will start to fall apart.

Like a real short or just a put? A real short is gonna cost some change if it takes awhile.

a real short, and that's what I mean, it's a tantalizing idea but in reality I'd almost certainly get liquidated

Most “tech startups” are scams that don’t work as actual businesses and are just get rich quick schemes. This has been well known since the original dotcom bubble

>Capitalism needs to die desu
Yes, so that we can finally all starve...

Is anything about THAT new in US money allocation schemes?

It seemed like you're generally doing illegal things with capital gambling on a booming thing that gets a monopoly or else it's a bust.

At least everyone will be starving to death equally now. Isn’t socialism wonderful?

>Anyways, they're doomed. They somehow turned the old scheme of the man selling shovels to the gold prospector unprofitable.
Except that’s not what they’re doing. They’re renting bulk orders of shovels long term and then lending them out to individual prospectors.

That’s why they’re screwed in the next bust. If they’d merely positioned themselves as a middleman to struggling commercial real estate owners to get their spaces leased for a cut of the rent, their business model would be infinitely more sustainable.

you guys know of any underground websites?
Jow Forums has gotten kind of stale.

>>Except that’s not what they’re doing. They’re renting bulk orders of shovels long term and then lending them out to individual prospectors.

Ah, I didn't know wework actually worked desu.

I keep reading messages like this one literally everywhere (HN, Reddit, BusinessInsider, TechCrunch, etc), is this some sort of anti-wework campaign? seriously, why would anyone here on Jow Forums give a single fuck about their internal financial reports?

Had never heard of them.
Every time I think people aren't compeltely fucking retarded I come upon something like this.
Holy shit I need to get in on this.

>why would anyone care about a business valued at over 40 BILLION probably being a scam

Attached: 1566496629948.jpg (800x533, 38K)

protip: they ban nazis so look for nazis

Tech industry is overinflated and needs to crash and burn.

AYE FUCKING MEN

WeWork has potential to fuck up real estate companies too. There's a flurry of previously-confidential information being revealed to SEC and investment banks charged with underwriting their IPOs, and it turns out, in some cases, WeWork has been paying rent to its landlords not with cash but with convertible bonds that don't mature until several years from now, and these real estate holding companies booked the I.O.U.s at 100% of face value without doing credit analysis on WeWork and marking them down to whatever the expected debt recovery ratio was determined to be. We could see a cascade of bankruptcy in the commercial real estate sector if these companies have to suddenly report the billions of dollars WeWork "paid" them in I.O.U.s as loss.

I miss 8ch /cyber/ ;-;

Will this make my rent go down?

Anybody else can’t use the catalog on Jow Forums or just post on it?

>tfw couldn't afford uni after moving
>tfw watched tech bubble peak while trying to get money to go back to school
>tfw you'll get a tech-related degree just in time for the bubble to burst and your six figures starting to no longer exist

they just floated themselves on the market lad

sportschan org/h/

>WeWork has potential to fuck up real estate companies too.
what do you think?

Scam or not, you gotta admit. They've got pretty nice offices and they're not buried in some shitty depressing business park.

i've never heard of this company. what is it? an employment agency? temping?

So my rent will go up to stop them from going bankrupt?

Business parks have hot women

workspace rental it seems. They furnish their workplaces with gay hipster shit and startups pay them to work there.

It's less risk for startups since they don't have to get in a lease.

Fucking FINALLY someone made a thread about this. Read up on the following:

> WeWork leases leave landlords exposed to $40bn rent commitments
ft.com/content/83decf7a-c04d-11e9-b350-db00d509634e

Some comments:
> In many US cities co-working space, such as WeWork, have been the main driver of space absorption over the past three years.I In some cases as much as 35% of all new space. They tend to pay higher rent since there really is no credit and demand a high tenant improvement allowance from the Landlord. When this music stops the drop in market rents will be turbocharged. As the article points out, WeWork will just hand back the keys to the spaces it’s does not want and likely just renegotiate the lease terms on unprofitable space. What other option will a Landlord have?*

Another
> And the penny drops. That’s the whole point - wework isn’t exposed to the vast majority of lease obligations - its landlords are.

>Indeed, wework is a 95%+ non cross collaterialised pool of building ownerships with over 200 different “lenders” and 500 different buildings. The market goes up, they win. The market goes down, they throw back the individual sets of keys until the remaining buildings are profitable. And none of its individual landlords are powerful enough to make a difference when the downside happens.

>This happened in 2008-9. If anyone ever wondered why real estate funds took on 95% LTC loans from banks to buy buildings this is it. Wework is also in the business of collecting virtually free options over 500 separate, 15-20 year real estate ownerships at the direct expense of landlords who don’t understand that they are the one most exposed.*

Attached: 1548891327839.jpg (480x379, 19K)

More comments:
> @CharlotteSt.* I've been following the ups and downs of WeWork over the last few years, and I'd say that your assessment is rather spot on.*

>The only thing I will add is that the organizational culture at WeWork seems to be insufferably liberal. They don't even hide it anymore. Take a quick glance of the website and you will see that, not only are they marketing their office space, they are lecturing people on all manner of trendy, contemporary social causes that appeal to their highly impressionable young audience. Apparently, you must adhere to these causes if you'd like to become a 'member' of the WeWork group.*

Attached: 1517600641222.png (1500x805, 482K)

based wework sticking it to the landlord cucks

yikes more Trumpcuck snowflake tears

false, even if they did i wouldnt care.
twinks? sure.
women? disgust.

And the motherbomb. Its ALWAYS the kikes, Jow Forums is always right. Long post incoming:

So basically this is what we know about this charade so far, i apologise in advance:

1. Its not a technology company in any way, shape or form. No income is derived from the sale of a product or service delivered by a technology. Adam and Miguel claiming WeWork is a technology company is one of many indications that illustrate how they intentionally seek to defraud existing and potential future retail investors.

2. When asked what inspired him to create a shared workspace company, Adam said that when he was growing up in Israel he used to live in a Kibbutz and was so mesmorised by the sharing ideology that he invented Co-Working. Regus was founded in the 1980’s and LEO, Workspace Group, The Office Group, ServCorp and many many others were around way before Adam thought up of this fraud.

3. WeWork post full year invoices for the year ahead this year inflating their revenues. They then heavily discount the invoices they’ve already raised and treat them as an expense. They then pay whichever broker secured that lead 100%, yes 100%, of the contract value. Neither the discounts or the 100% in commission payments appear in their Financials as they are ‘community adjusted’. Note the industry standard commission is 10%, and imagine, they’re still struggling to find customers.

Attached: 1464106487652.jpg (480x454, 33K)

cont'd:

4. Adam & Miguel have already collectively cashed out in excess of $1bn in loans, royalties and who knows what other instruments (e.g. selling WeWork IP he acquired personally for less than $1m back to WeWork for $22m), they’re chilling, and reportedly less and less involved in the day to day running. Miguel is more involved in a range of other businesses and has already demoted himself from Co-Founder to Head of ‘Global Culture’, quietly positioning himself for a quick exit post-IPO. Adam on the other hand fancies himself as the next Masayoshi, he has his own ‘venture capital’ firm investing in genuine entrepreneurs. Why would either of them care what happens to their remaining holdings, they’ve already swindled enough to set up their grandchildren for life?

5. Then Adam + Miguel used that very income swindled out of WeWork through an array of multiple jurisdicted tax havened entities and diverted it to their privately controlled investment vehicles to build up real asset rich portfolio (not a short-term asset-light fraud)....

6. .....It doesn’t end there, they then lease those very buildings purchased using their loans back to their own ‘spiritually’ valued WeWork unicorn at a ridiculously lucrative high yield. Even the very founders are bleeding their own Ponzi scheme dry. Are these guys something or what.

7. Then when they got caught, Adam tried to justify it by claiming that they bought the buildings years ago as a way to prove the concept works to landlords. An outright lie.

Attached: 1460636871805.jpg (214x200, 6K)

cont'd:
8. The only reason why its valued at $47bn is purely because one chap in Japan bafflingly and solely invested a total of $12bn, in 9 separate funding rounds, each at double the price (and valuation) he (and he alone) paid less than 12 months prior. Since Softbank first invested in 2012, nobody else has invested (not including shares Adam and Miguel may have quietly dumped privately). The only two people who claim WeWork is worth $47bn are Masayoshi Son and Adam Nuemann (and of course Henry Blodget, a permanent fixture at the famous hedonistic WeRetreat festivals, the monthly candy-fuelled all expenses paid festivals (courtesy of Softbank). As long as we’re debating, and continue doing so until after the IPO they’re loving it. No media outlet, for reasons Im not too familiar with, are willing to just come out and say it, and thats their advantage.

9. Why would Masayoshi, an evidently highly intelligent individual, would invest so many billions into this plain as day fraud? For the life of me I cant figure it out. Maybe it really is as simple as it looks, its impossible for him to sell his shares on the secondary market or post-IPO for $100bn+ if he didn’t allow Adam and Miguel to parade WeWork to the press as being a $47bn company, using purely his 9 sole investments and revaluations. Once he exchanges, media outlets can run headlines that project an aura that the company is indeed worth what two people have decided to value it at. It seems to be as simple as that. Everybody in the loop benefits, from the early investors that hope to offload their investments to later stage mugs, media personalities like ‘journalist’ Henry Blodget who must have earned at least $10m from WeWork in PR related income to date to the Goldman Sachs and JP Morgans who earn hundreds of million in share sale commissions. Everybody wins. No one is accountable.

Attached: 1503175007499.jpg (2400x2400, 905K)

cont'd:
10. They have raised a total of $13.7bn ($12 billion from one Japanese investor alone poor chap) and cannot show (even whilst using all their financial trickery and groundbreaking new accounting principles) manipulated revenues of 10% of that.

11. Co-Working as anybody in the industry will tell you generates almost as much of a yield as your traditional commercial leasing agreements. These days everyone provides serviced offices and co-working, even British Land is getting in on the mix. Cafe’s and Hotels too, especially those catered to Business Travellers. Even brokers are building their own platforms where they act as an operator, Instant Managed, CBRE to name a few. Its like the hotel industry only many times simpler, its just desks, chairs, simple decor (plants and art.com picture frames) in common areas, wifi, electricity, cleaners, plates and cutlery, and if you want.... a voip plug in handset. It used to be highly profitable because there were few half decent ones around but today they’re everywhere and desk prices have collapsed whilst conventional leasing agreements have held steady. They’ve risen in the most sought after locations most suitable for serviced office centres.

12. WeWork even thought about setting up WeCafe’s, they want to be the first ever to disrupt the working in a ‘coffee shop as a service’ space. They weren’t aware when they first launched in 2010 that people can work in cafe’s where amazingly they get a free table and a chair and even wifi for the price of a cup of tea. If WeWork actually charged their members a fraction of the market rate, half will vanish overnight.

13. One brief search on any review site should show you the extent to which they couldnt care less about what their customers think or for providing any type of quality orientated service. They also seem to have a habit of charging even after you’ve vacated.

Attached: 1465946294138.jpg (320x320, 8K)

>What other option will a Landlord have?*
Increase rent on residential units.

14. The earliest shareholders including a gentleman called Mortimer Zuckerman were not just their landlords AND seed investors. They also happened to own Fast Company and NY Post which were instrumental in propping up WeWork in the press. The headlines they spun about WeWork’s valuation and ‘meteoric’ rise was basically the shareholders advertising their investments.

15. WeWork has spent more on Public Relations (mainly towards Henry Blodget, a permanent fixture at the famous hedonistic WeRetreat festivals, the monthly candy-fuelled all expenses paid festivals courtesy of Softbank) that give the impression the company is a roaring success, they pay for much of these articles. Every week they pay media outlets like Business Insider, Forbes, Fast Company etc to write sensational headlines like ‘The Rise of WeWork’ and ‘How WeWork become a $47bn company’. None of which give you actual metrics, just the founders utopian cringeworthy marketing gobbledygook. As any swindler will tell you, image is everything.

16. He hasnt achieved any of the metrics he set out to achieve in the original investor pitch book presented to investors (available online) which not surprisingly never even included the two largest costs of marketing and fit-outs (because he claimed landlords will front these costs) from the financials so as to inflate the percieved profitability.

17. WeWork invented its own now infamous Community Adjusted EBITA accounting principle which substantially masks the true losses of the company, without them they would have to post losses in excess of $4bn+

18. If you are not already acutely aware that Adam Neumann and Miguel McKelvey are fraudsters, count the number of times the word ‘Hustle’ is plastered in Neon lights at every one of their tacky ikea-designed offices (or just google the words: wework hustle and click on images).

Attached: 1525243128619.jpg (597x593, 41K)

cont'd:
19. Employed his whole family, three cousins in Tel Aviv, his brother the Chief ‘Wellness’ Officer in New York, even his wife, who is very much looking for recognition, persuaded Masayoshi to sink $100m into her own Ponzi Scheme too, WeGrow, the ‘future of education’.

20. Two profitable serviced office groups, the largest IWG and the most luxurious LEO, who collectively manage in excess of 3000 centre’s have been on the market for close to 2 and half years now and they haven’t been approached by anybody willing to pay a multiple of more than 1.25x revenues.

21. When asked whether he was on crack when he sat down with Mayahoshi and they both valued their investment at $47bn, he replied ‘"No one is investing in a co-working company worth $20 billion. That doesn't exist. Our valuation and size today are much more based on our energy and spirituality than it is on a multiple of revenue.".

22. When Miguel was asked about their $20 billion valuation (before it was almost tripled to $47bn), Miguel McKelvey answered ‘Who gives a s***?’.

WeWork will never, ever, in its short history generate a profit, let alone the $5/$8 billion in profits it will need to justify its $47bn valuation.

Attached: 1473712164330.jpg (474x444, 203K)

cont'd:
A lot of people could have done what Adam Nuemann and Miguel McKelvey did, they don’t because they’re not prepared to engage in a fraud. They can play dumb all they like but when you’re fiddling with your financials, inventing accounting principles, marketing yourselves falsely as a ‘tech play, cash out close to $1bn, employed your whole family from your brother, your second cousins to your wife, the Strategic Thought Advisor, all on fat salaries etc, etc...please for heavens sake don’t try and convince me that they are unaware of what they are doing. They know exactly what they’re doing. Adam and Miguel purposefully choose to hide those metrics in ‘Community-Adjusted EBITA’s’ and other financial jargons. Why are they still parading WeWork as a technology company, does anybody believe that as cunningly intelligent as they evidently are, that they genuinely think WeWork is a ‘technology’ company? Why on earth would they have already cashed out, and not just a few million dollars to get a mortgage but hundreds of millions to buy commercial buildings that they used to further bleed their own Ponzi Scheme with?. Imagine, they have cashed out an equivalent to roughly 62% of their revenues, whilst they post bricks and mortar losses of more than double that.

Attached: 1529184027642.jpg (490x437, 61K)

final post:
This is why you can confidently say that Miguel McKelvey and Adam Neumann are knowing engaging in a fraudulent Ponzi scheme and are nothing more than your average, traditional run of the mill fraudsters and swindlers, or in their own words....Hustle’s.

Now they hope to defraud the big boys on the US Stock Market, and they will most likely get away with it.

The most discomforting element of this whole deception is that after perpetuating this fraud for so long, media outlets are now inviting these fraudsters to media-sponsored ‘leadership’ events where they’re put podiums to teach us how to be visionary’s whilst they have now made it unnecessarily more difficult for genuine entrepreneurs to raise capital in future.

Remember Jow Forums, Jow Forums is always right and Jow Forums sometimes is.

Attached: 1545250249374.png (404x350, 312K)

I've been to business parks in HK SF San Jose and they are full of hot women that want to suck dick.

based. and he cashed out $700m last month and the """new media""" said it was fine, he always does this, he just needed a pair of sandals.

Who will hurt the most buy the wework ponzi?

>One meme zoomer startup company failing can take down an entire industry because of VC

How's that job at Micky D's where you fuck everyone's order up going?

Attached: 1562139883276.gif (400x225, 785K)

dude literally everything is actually worthless don;t worry

I have a private office there, it's comfy, have all the snacks I want and can shitpost while I work freelancing.

Your apartment could foreclose and seek new ownership under a bank, god knows what will happen then.

Rent never goes down here. It's a living hell in the SV.

All tech brands and services are now pump and dump. Worldwide. You think youtube and gmail makes profit?

>wework changes name to the we company, buys name trademark for 6m from... The CEO

nibba, what do you think happens when VCs lose a ton of money all at once? they force their sellable startups to get ready for exit whether they're ready or not i.e. reduce expense (fire employees), stop new r&d, put products in maintenance mode to quickly make their balance sheets look like they're making money or not losing too much money then find a buyer. this has a knock-on effect on the entire industry as startups reduce buying goods and services from each other and also established tech companies causing a recession for the entire industry.

Yt and Gmail is a data harvest mechanism. It's the data that makes money nowadays. I'm getting too old for this world. What has it become?

You should add the part that they're losing money per customer
Qualitative analysts should go ground their predictions on numbers

Knowing what porn you browse or what retail stuff you want to buy isn't really profitable.

Retail is low margin and fueled by debt thanks to cheap debt from banks worldwide.

It is a mix of pump and dump with stalinist police state program. Gmail and youtube enforce the illusion that Google is huge and it's stocks would keep going up, so it is linked with the "pump" part.

>Masayoshi

Isn't he running a scam of his own these days with the Vision Fund? He literally got $100 billion from the Saudis who will let him spend it however he likes with zero oversight (not that Saudi royals have the knowledge to properly keep an watch on a VC). He just needs keep his Vision Fund holdings at artificially inflated valuation for a few years then take the multi-billion dollar performance milestone payment jackpot (payable by the Saudis to SoftBank and Masayoshi himself, of course).

What tech companies will go bankrupt first.

I think apple

Incompetent companies dying off means capitalism is working as intended.

Tesla

They will probably be too big to fail. It will look really bad if us tech companies fail. I kinda want Google to go away because they are killing the area. It's a dude ranch here and everything is unfun uncool and expensive

VMware

I think Tesla will stay because they are close to level 5 ai.

i don't see how anybody who isn't retarded can think of them as a tech company and not more of a real estate company.

and no way will this bring the tech industry down, just a few VCs/investors who clearly have no idea what they're doing anyway

The company is going public so they know how to scam

based

40yo+ Whites
And Jewish nerds, who aren't in thaknow

>can give back the keys if it's unprofitable
Wouldn't their business collapse if they don't have any leasable space? And aren't they already unprofitable?

every company i've worked at used gmail for business email. it makes money, i'm sure

>going public
Let me guess. They don't make a profit either.

probably younger

Its probably gonna kill some startups if wework goes bankrupt but I really hope wework goes bankrupt cause they sniped some properties from me in atlanta and new york

>WeWork
>a tech company

Attached: 700.jpg (208x326, 15K)

So long WeWork and short traditional commercial real estate? Based

Shorts making stock go short.