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Why does WeWork increasingly look like one of those deals on Shark Tank that starts off looking great then goes way south when the sharks start probing? I can
by code4tee 7y ago
Why does WeWork increasingly look like one of those deals on Shark Tank that starts off looking great then goes way south when the sharks start probing?
I can see it now:
“Wait, so we’d be investing in your business which is leasing buildings from another business that you own... but we’re not getting a piece of that action?”
“Hold on, so we’d have to license the name of this company back from you and then you continue to get a royalty from that?”
“So what’s your revenue and how much did you take home last year? Sorry say that again?!?”
- ChuckMcM 7y agoPretty much as far as I can tell. My rule is that after finding more than one path where a company is generating metrics through a scheme where it is on both ends, I figure they are all in on the misrepresentation/fraud aspect.
- x0x0 7y agoThe thing is, the $6m is so... pissant. Like WeWork made Adam a (multi!) billionaire. What is he doing scamming WeWork over $6m?
- braythwayt 7y agoThere's a certain type of personality that sharpens their pencil over everything and anything. They are often zero-sum thinkers, who reason that if they aren't taking the maximum on everything, somebody else is taking advantage of their "generosity."
- kirubakaran 7y ago"noun is gonna verb" comes to mind (where noun ≈ verb)
- human20190310 7y agoIt's 6 million real dollars.
- cameronbrown 7y agoI can imagine he could sell 6 mil. in stock without damaging the price.
- x0x0 7y agoWhereas -- and this was implicit in my comment -- playing pissant games like this almost certainly hurts the stock price. It also screams that you ought to be closely auditing expenses from every member of the cxo team.
- munk-a 7y agoHe's already offloaded a bunch of stock - he might just be trying to milk it for all it's worth before the price tanks post-IPO. The beautiful thing is that CEO culture and reputation is such that having successfully lead a company to an IPO might be enough on it's own to land him a number of cushy board seats and future CEOing opportunities assuming he doesn't just grab the cash and run to Peru.
- arcticbull 7y agoHe already sold $700m of stock for real money just before the IPO.
- hcs 7y agoNot exactly... "In consideration of this contribution and in lieu of paying cash, the Company issued to WE Holdings LLC partnership interests in the We Company Partnership with a fair market value of approximately $5.9 million, which was determined pursuant to a third-party appraisal." (Quoted by Matt Levine, I assume from the original statement)
- human20190310 7y agoI stand corrected. That turns the whole matter into a complete WTF.
- pawelk 7y agoThe mindset required to become a billionaire is incompatible with that of leaving 6M on the ground for whatever reason ;)
- nodesocket 7y ago"I'd like to propose a licensing deal for WeWork..." -- Mr. Wonderful
- gandutraveler 7y ago"Wework is a poo poo on a stick"
- efrafa 7y agoIt's a dog!
- preommr 7y agoTo be fair, some of the offers those investors make are pretty awful and sometimes they treat the people on the show pretty badly. The show is mostly for entertainment and a lot of it is manufactured. If people go on the show trying to give them as little as possible while also getting promotion on tv, then I don't really blame them.