WeWork raises $3 billion from SoftBank


(Alex Sherwood) #1

It looks like WeWork will be putting off going public for a little while longer..


(Harry) #2

Interesting timing - they seem to still have billions in cash in their balance sheet I don’t see why they needbyet another raise/infusion now.

Also interesting this is a direct investment, not from the vision fund - I’m not an expert on corporate structure but I think lots can be read into that - looks like they’re position share ownership for a potential IPO and to maximise return.


#3

(Alex Sherwood) #4

Is it just me or is that really bad?


#5

Ethically it’s very bad. But the board cannot do much even if they wanted to because the CEO has majority voting rights. There’s a lot of startups with share structures like this.


#6

Adam: “Hey WeWork, do you want to lease my building for a lot of money?”
[shuffles around so he’s facing the other way]
Adam: “Ooh yes please.”
[shakes hand with self]

Horrible ethically, but as @saf says there’s no effective governance. Facebook and others have similar structures.


#7

Another excellent Polymatter video:

Complimentary Bloomberg coverage decent too:


(Alex) #8

WeWork appears to me to be one of the most overvalued companies in existence. I’ll be staying well away if/when they ever hit the public market.