WeWork Parent Weighs Slashing Its Valuation in Half

Re:WeWork Parent Weighs Slashing Its Valuation in Half by ineedasername on Thursday September 05, 2019 @10:55AM (#20887307)

On #2, how does this change from CapEx to OpEx? Unless there's actually a transfer of ownership involved, generally at the end of a lease, traditional releases are already considered operational expenses, not capital.

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Re:WeWork Parent Weighs Slashing Its Valuation in Half by kgwgk on Thursday September 05, 2019 @11:16AM (#20887564)

The accounting standards are changing and long-term (i.e. longer than 12 months) leases are now included in the balance sheet:

https://www.iasplus.com/en/publications/global/thinking-allo...

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Re:WeWork Parent Weighs Slashing Its Valuation in Half by ineedasername on Thursday September 05, 2019 @12:12PM (#20888121)

Okay, that makes sense, so it's less of a shift and more of a way to continue or return to business as usual.

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Re:WeWork Parent Weighs Slashing Its Valuation in Half by kasey_junk on Thursday September 05, 2019 @11:05AM (#20887437)

It’s less a move from capex to opex and more a move to short term leases.

I’m skeptical that’s a moat that will defend WeWork but it’s certainly a handy feature.

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