WeWork is in the news. Not for anything good. Looks like some tough sledding for those who bought into the ridiculous valuation placed upon this company. We are told the last “buy” was at a $47 billion valuation. This for private buyers. Private buyers are the ones that very often make out in a big way. Currently, WeWork cannot even come public as estimates now are for a $10-$15 billion valuation. We believe that even at those levels, the valuation is insane.
We can get into the why…long term leases and short term rent, hardly recession resistant, trying to sell the company as a technology company (a laugher), self dealing, un-disciplined CEO! But for us, the simple issue is the investment banking community again tried to foist stuff onto an unwary public at valuations that are outrageous. For comparison:
IWG…formally known as Regus