The curious case of We Work isn’t the proposed valuation of $47 billion, but instead why lead investment banks were’t able to price it at those levels. Over the past decade, these fucking banks have dumped one bullshit VC deal on the public after the other. Now, all of a sudden, they found religion?
What in the fuck is going on here?
Via Reuters:
WeWork owner The We Company may seek a valuation in its upcoming initial public offering of between $10 billion and $12 billion, a dramatic discount to the $47 billion valuation it achieved in January, people familiar with the matter said on Friday.
The deliberations indicate that WeWork does not feel confident that the corporate governance changes it unveiled on Friday will be enough to woo investors concerned about its lack of a path to profitability.
The sources cautioned that no decision has been made and asked not to be identified because the matter is confidential. WeWork did not immediately respond to a request for comment.
For you home gamers, that’s a 78% discount from private valuation “models” or a $37 billion haircut.
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Awesome. Must be the next Netflix.
Have a good weekend.
Its actually the next starbucks but you have to pay $10 for a cup of coffee.
Are VCs done circle jerking each other with these valuations? I thought this was why SAAS names were getting sold off, but now I see Cloudflare up 20%…
I was hoping it was going to be a short that you tell your grand children about. I’m amazed Softbank was duped like this. It’s an office space leasing company with a fancy ribbon, nothing more.
They know people would look at it like Uber and short the hell out of it from inception making profits from idiots who invested in it. Not exactly the smartest guys in the room because these guys are going to run out of cash.
WeWork won’t be *bought*, but it will be *sold* – by banks, to their customers through ETFs. Many people and their grandchildren will end up owning this trash, and not even know it.
“Who coulda known?”
These new group of loser silicon valley companies are worse than the first dot com. they cant do dick with a computer but they sure ad hell can use other peoples work and assets to screw other people over and losr billions in the process. Total crap business models. None of them will ever be profitable. Its socialist and it sucks. Amazon the model for them is not socialist. There is a big difference.