Re:SoftBank to take control of WeWork: Sources
by acchow on Monday October 21, 2019 @07:53PM
(#21318896)
> like paying 100% commission to real estate agents.
Why did they do this?
Re:SoftBank to take control of WeWork: Sources
by ratww on Monday October 21, 2019 @08:01PM
(#21318954)
To grow faster and disrupt the market. For a while it was more than a simple commission: it was 100% of the revenue for a whole year. They were also offering one-year free rent to new customers.
Source: https://outline.com/yCcgS5
Re:SoftBank to take control of WeWork: Sources
by carty76ers on Monday October 21, 2019 @08:23PM
(#21319094)
That has to be the most ridiculous thing I’ve ever heard, since Enron paid their employees bonuses for unprofitable deals.
Re:SoftBank to take control of WeWork: Sources
by chii on Monday October 21, 2019 @09:19PM
(#21319444)
we'll take a loss on each sale, and make up for it in volume!
Re:SoftBank to take control of WeWork: Sources
by DuskStar on Monday October 21, 2019 @08:54PM
(#21319290)
"100% of revenue from the year as commission" and "rent is free for the first year" sounds like the perfect combination, though.
If not likely to result in your real estate agents sending more things to you in the future.
Re:SoftBank to take control of WeWork: Sources
by hanniabu on Tuesday October 22, 2019 @02:27AM
(#21320868)
It makes sense for Adam. Schmooze the real estate agents with WeWork money so they find you nice deals and get you priority bids, buy the property at this nice discount, lease the property to WeWork. He's winning all around, spend money that's not yours to get equity that is yours.
Softbank also has full access to the company’s financials and will be in a position to restructure. It’s safe to say they are a lot better informed than we are.