Re:WeWork documentary explores a decade of delusion
by tshaddox on Tuesday April 06, 2021 @01:50PM
(#26715062)
Assuming that they actually were routinely renting out office space at a loss, then you’re certainly correct. VCs could also use their money to throw big extravagant parties with free food and entertainment, and they’d also get lots of people to show up!
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Re:WeWork documentary explores a decade of delusion
by nickelcitymario on Tuesday April 06, 2021 @02:10PM
(#26715300)
Even that's hard to nail down, because their cost to revenue isn't 1:1.
Their cost renting a space was fixed. Their revenue renting it out was variable.
If they simply couldn't rent out enough of the space to be profitable, that's not scandalous. That's just the risk you take in any business.
But if they were renting out the space at rates that could never become profitable, then it is scandalous, because they're burning money by design.