WeWork CEO makes millions leasing buildings to WeWork

[Nine_Ender]

It's all millennials renting out this space thinking they are entrepreneurs and CEOs ....this scene will be non existent during the next crisis.

Like most of your forecasts there is no point to them. Seize the moment and profit from the current business cycle ( and stock market for 10 years ), rather then be paralyzed by the fear of the next "crisis" of which you have ZERO ability to time.

This is a lesson you seem unable to grasp.

 

[JSOP]

Lemme try to understand this. The owner bought properties or signed leases and then sub-leased them back to his own company? How is he going to make money when he's just paying himself? He has 100% voting control of his companies' shares so all these are eventually going to go back to him. So he's invented a ponzi scheme where he is both the con man and the victim? LOL God, the world is getting weirder and weirder and we are only in the 21st century.

 

[Stockolio]

All that, with other people's money! Softbank is just horrible at investing lately, too big to fail of Japan... Ceo is just making bad decisions one after another, maybe he should retire, he had a great career but he will bankrupt his own baby... 152 Billion worth of debt

 

[newwurldmn]

Lemme try to understand this. The owner bought properties or signed leases and then sub-leased them back to his own company? How is he going to make money when he's just paying himself? He has 100% voting control of his companies' shares so all these are eventually going to go back to him. So he's invented a ponzi scheme where he is both the con man and the victim? LOL God, the world is getting weirder and weirder and we are only in the 21st century.

No. The hired CEO of a company bought properties personally and leased them to the company he was hired to work for.

He’s stealing from the shareholders he is working for.

 

[zdreg]

unless they clean up their act the company will never IPO. there is too much conflict of interest or appearance of conflict for WeWork to become a public co.

 

[Sig]

No. The hired CEO of a company bought properties personally and leased them to the company he was hired to work for.

He’s stealing from the shareholders he is working for.

That sounds a lot like having your company require a big retinue to follow you and then putting the up in accommodations owned by you at your company's expense? I guess that's fine if the company is the Federal govt?

 

[Sig]

It's all millennials renting out this space thinking they are entrepreneurs and CEOs ....this scene will be non existent during the next crisis.

I've lived through a major recession as an entrepreneur (you?). If anything the need for co-working space grows during a financial crisis. Entrepreneurs don't go away, but the funding to have your own dedicated office space often does.
It's a dangerous thing to fall into the "kids these days" contempt in general, definitely when it is relateded to something you not only have no experience in but appear to know next to nothing about.

 

[newwurldmn]

I've lived through a major recession as an entrepreneur (you?). If anything the need for co-working space grows during a financial crisis. Entrepreneurs don't go away, but the funding to have your own dedicated office space often does.
It's a dangerous thing to fall into the "kids these days" contempt in general, definitely when it is relateded to something you not only have no experience in but appear to know next to nothing about.

Actually a startup friend of mine mentioned something interesting. It's not the small business entreprenuers WeWork is going after. It's the JPMorgans and GE's who can flex their office needs much easier. If WeWork can do it such that they can earn a higher rent than the long term lease while providing cost savings to their large customers (by improving utilization) then it will be a successful business.

 

[newwurldmn]

That sounds a lot like having your company require a big retinue to follow you and then putting the up in accommodations owned by you at your company's expense? I guess that's fine if the company is the Federal govt?

Nothing wrong with this... especially if your goal is to drain the swamp!

 

[Banjo]

Actually a startup friend of mine mentioned something interesting. It's not the small business entreprenuers WeWork is going after. It's the JPMorgans and GE's who can flex their office needs much easier. If WeWork can do it such that they can earn a higher rent than the long term lease while providing cost savings to their large customers (by improving utilization) then it will be a successful business.

https://www.economist.com/business/2018/07/12/big-corporates-quest-to-be-hip-is-helping-wework

It’s got an automatic set of potential customers: Right now, a quarter of WeWork’s memberships are held by large Fortune 500 companies like Facebook, Starbucks, and Microsoft.
https://www.wired.com/story/wework-teem-software-acquisition/