SoftBank Finds Limits to Its Love for WeWork as Investors Push Back(wsj.com)

39 pointsby pl0xvor 8 Jahren14 comments

SoftBank Finds Limits to Its Love for WeWork as Investors Push Back

https://www.wsj.com/articles/softbank-finds-limits-to-its-love-for-wework-as-investors-push-back-11545225988

14 comments

hieivor 8 Jahren

erikbvor 8 Jahren

I was in a WeWork once for an event in Berlin, around 2015 I think. It was the weirdest experience I ever had. Objectively everything looked cool, elegant and comfortable. But it felt super fake, cold and inhuman at the same time.

Also I assume because it's a premium location that they rented or bought for that WeWork office, that their prices will also be premium. And honestly, if I can pay premium, wouldn't I just get my own office?

It all didn't really click together, so I never entered a WeWork office again. Instead it let me to wonder if the start-up world has reached it's peak.

Edit: To not just say negative things. The CEO of WeWork is a super smart business man. Another commentor posted an interview (https://www.youtube.com/watch?v=yOb_ogQJWeI) and I have to say I would also want to give this guy money. He's totally able to sell his vision as something that already exists and just needs your support to get it finished up.

umichguyvor 8 Jahren

Probably should replace the word Arab with Middle Eastern in the OP's title.

Mikeb85vor 8 Jahren

Why? Arabs are from Arabia (it's named after them), and the backers are from Arabia (aka. the Arab peninsula).

dangvor 8 Jahren

We changed the title from "SoftBank’s Arab Backers Balk at Planned Acquisition of WeWork". It's possible WSJ edited their own title; I think it had a quite different one earlier.

ipsum2vor 8 Jahren

Title seems misleading. Nowhere in the article does it say or imply that Wework is being acquired, just another funding round.

flocialvor 8 Jahren

The title on WSJ reads "SoftBank’s Biggest Backers Balk at Planned $16 Billion Acquisition of WeWork". I think the original is better than OP's.

ipsum2vor 8 Jahren

I was looking at the Outline article that someone posted earlier that didn't mention any acquisition, oops.

drak0n1cvor 8 Jahren

Last year I saw many large group tours of Japanese businessmen from various companies (around 2 dozen people each time) in Seattle WeWork offices. Then the Tokyo WeWork locations opened earlier this year. I visited one during a recent trip and it was as full as the flagship one in Seattle.

bhoustonvor 8 Jahren

I worry about weworks ability to survive a downturn. Especially in an environment where there is not easy money. I remember high vacancy rates and the failure of Olympia and York and similar issues. Wework seems at the vulnerable end of real estate.

timavrvor 8 Jahren

Is it just me or it feels like valuations on these deals is just to make LPs paper profits?

Where the reality is that if SoftBank does not provide funding, WeWork is not making it to the choppa?

101kmvor 8 Jahren

For a pinch of irony the founder is Israeli: https://en.wikipedia.org/wiki/Adam_Neumann https://www.youtube.com/watch?v=yOb_ogQJWeI

tl;dw - "As of 2 years ago 98% only young entrepreneurs, as of today 30% of all of our members are enterprise, corporate America.

23% of all Fortune 500 companies are already in WeWork.

..If they want a satellite office they'll just put it in a WeWork, if they are looking for an HQ or they want to redo their HQ they'll ask us to do it.

And today we don't even take the space - we will redesign the space, build it, deploy our technology which is called WeOS and took a long time to create and put our community managers in there.

I would love to do it for city hall, in fact if any mayors are listening: we.co/mayors"

devoplyvor 8 Jahren

Money does not care much about your place of birth or ethnic affiliations... Especially the Saudis who have no qualms about Israel. Commercial real estate, however, is hardly the future. In my city for instance 30% of commercial real estate is sitting vacant.

Their concerns would probably be focused on this:

> In its first ever release of financial results, the privately held firm said total revenue rose to $421.6 million from $198.3 million in the year-ago quarter as memberships jumped to 268,000 at the end of June from 128,000 a year earlier.

> Net losses jumped to $723 million over the first half of 2018 from $154 million a year earlier.

https://www.reuters.com/article/us-wework-results/wework-rev...

shard972vor 8 Jahren

Whats Ironic about that? Isn't SA allied with Israel?