Re:WeWTF
by blankcheque on Saturday August 17, 2019 @05:10PM
(#20726412)
I've heard it's not uncommon to separate low-multiple assets and high-multiple assets into different structures.
In this case, the builds are the low-multiple assets and they're being separated out from the high-multiple asset which is the management company.
Imagine a huge conglomerate who has the ability to take revenues in more than one division - you claim the revenues in whatever the market treats as having a higher multiple, thus inflating your “growth” story and your stock price. To financial folks it looks like you’re shedding old businesses and making a new hit, but in reality it’s a finance trick.
Wouldn't the buildings usually be owned by, like, a subsidiary of WeWork, or a holding company that also owned WeWork, or something?
Re:WeWTF
by lonelappde on Saturday August 17, 2019 @08:02PM
(#20727246)
WeWork is the junk company that only exists to funnel investor money to the founder via his other company.
Self-dealing, as in how the founder leases his building to his firm, or how he owned and sold the We trademark to his own firm? I wouldn't call that 'stupidity'. In fact, it sounds very smart, for the founder. And unethical bordering on criminal.