Re:The We Company S-1
by skinnymuch on Wednesday August 14, 2019 @08:40AM
(#20694888)
Wouldn’t it be from the IPO? If they sell 10% of the company, it should raise billions.
That sounds like a ponzi scheme, not an investment.
I would never invest in WeWork, but no, not at all. A Ponzi scheme takes new investor dollars to pay the earlier investors’ “returns”.
Taking new dollars to grow the company to generate future profits is actually the definition of “investment”.
A ponzi scheme requires fraud. If you've evidence of fraud going on here then perhaps you should report it to the SEC.
Isn’t that like a trend these days? Unless I’m missing something, can you please explain?
Re:The We Company S-1
by blaser-waffle on Wednesday August 14, 2019 @09:14AM
(#20695145)
The only difference between those two concepts is malice.
Re:The We Company S-1
by exothermic on Wednesday August 14, 2019 @11:12AM
(#20696363)
And yet, their operating margin before any growth spend (or G&A) is a meager 20%.
I suppose this has to do with relatively low average occupancy rates? I wasn't able to find occupancy rates on their existing locations in the S-1.
I don't wonder that, cash in today's climate is easy to get.
What I wonder is 'How spectacularly will their business implode if a recession starts?'
> I just wonder where they get the cash in the meantime. >$1B/year burn rate
They're raising up to $6B in a debt offering.
So theoretically, they have a path to profitability. I just wonder where they get the cash in the meantime. >$1B/year burn rate, ouch.