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(CNBC)   Last year, WeWork was valued at $47 billion. At year-end, it was down to $7.3 billion. Today? $2.9 billion   (cnbc.com) divider line
    More: Fail, Discounted cash flow, Free cash flow, SoftBank Founder, Masayoshi Son, SoftBank, Cash flow, Vision Fund portfolio companies, SoftBank Mobile  
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434 clicks; posted to Business » on 19 May 2020 at 7:57 AM (8 weeks ago)   |   Favorite    |   share:  Share on Twitter share via Email Share on Facebook



Voting Results (Smartest)
View Voting Results: Smartest and Funniest

 
2020-05-18 9:44:33 PM  
27 votes:
Pretty sure it's worth Jack S*it.
 
2020-05-18 9:52:29 PM  
16 votes:
$2.9B?

That sounds about $10B too high
 
2020-05-18 11:09:04 PM  
15 votes:
Softbank lost $18 billion of Saudi and Emirati money on this and other crazed unicorn plays in the last year.

So......good news really.
 
2020-05-19 8:07:47 AM  
13 votes:
Some of these startups look an awful lot like pump and dump schemes.
 
2020-05-19 8:26:25 AM  
7 votes:

HugeMistake: Unfortunately no lessons will be learned here. Softbank will blame it on COVID-19 instead of acknowledging that WeWork was a ludicrous scam, and they fell for it.


Are they really going to ignore a solid year of "Adam whatshisname is a giant self-dealing fraud" and claim that it's COVID that killed their entirely stupid "rent office space for less than we paid, and we'll eventually make money!" business?

// easiest way to wind up with a billion dollars? start with $2B, and let venture capitalists "dream big"
 
2020-05-19 5:45:59 AM  
7 votes:
Unfortunately no lessons will be learned here. Softbank will blame it on COVID-19 instead of acknowledging that WeWork was a ludicrous scam, and they fell for it. Consequently, they will do. the same thing with the next one that comes along. Given their track record, it's a bit of a miracle that Softbank still exists. A cynic might begin to suspect that the whole thing is an elaborate money-laundering scam.

CSB: I was offered a job at Softbank, many years ago. I turned it down because I knew I could not muster the requisite levels of wide-eyed credulity and uncritical thinking.
 
2020-05-19 10:21:35 AM  
4 votes:

This text is now purple: 433: The people behind Pets.com must be losing their goddamned minds every farking day.

Pets.com does something useful.


Fark user imageView Full Size


The business model of buying pet supplies online eventually worked out, too.
 
2020-05-19 10:17:42 AM  
4 votes:

FunkJunkie: I watched a YouTube vid about WeWork a couple of weeks ago and even after I couldn't figure out how exactly the company came to be valued the way it was.
The vid explained 'how' it happened but the 'why' of the way money starts to behave at that level is something I cant wrap my head around.


The way startups determine valuation is crazy. It has absolutely zero to do with the company and is completely dependent of how good you are at talking people out of money. If I talk a friend into investing $1,000 in exchange for 10% of the company, then the company is worth 10,000. If that friend is super rich, and is willing to give me $100,000 for 10% of the company, then the company is worth $1M. Doesn't matter what the company does.
 
2020-05-19 10:11:14 AM  
2 votes:
There is a freaking reason why tech bros suck at industries that require massive capital fixed costs.
 
2020-05-19 9:10:42 AM  
2 votes:

HugeMistake: Unfortunately no lessons will be learned here. Softbank will blame it on COVID-19 instead of acknowledging that WeWork was a ludicrous scam, and they fell for it. Consequently, they will do. the same thing with the next one that comes along. Given their track record, it's a bit of a miracle that Softbank still exists. A cynic might begin to suspect that the whole thing is an elaborate money-laundering scam.

CSB: I was offered a job at Softbank, many years ago. I turned it down because I knew I could not muster the requisite levels of wide-eyed credulity and uncritical thinking.


Softbank is who turned this into such a huge lossmaker. They took a guy with a moderate dream with small potential and told him that if he expanded it tenfold or a hundredfold they'd fund him. They also were big in backing Uber early on, the dream of abolishing private car ownership worldwide with one monopolistic source of rides was one that resonated because SoftBank's CEO is a farking idiot when it comes to evaluating potential.
 
433 [TotalFark] [BareFark]
2020-05-19 4:08:58 AM  
2 votes:
The people behind Pets.com must be losing their goddamned minds every farking day.
 
2020-05-18 10:53:33 PM  
2 votes:
TheyBroke (tm)
 
2020-05-19 10:43:17 AM  
1 vote:

Mad_Radhu: This text is now purple: 433: The people behind Pets.com must be losing their goddamned minds every farking day.

Pets.com does something useful.

[Fark user image 371x233]

The business model of buying pet supplies online eventually worked out, too.


Sure it has.  Chewy is even more unprofitable than pets.com.

Fark user imageView Full Size
 
2020-05-19 10:13:21 AM  
1 vote:

Rhyno45: Pretty sure it's worth Jack S*it.


Probably negative, given the long-term leases it is locked into.

VC don't seem to understand the basic differences between software companies that can grow with very little additional costs and physical product companies where growth and costs are in a virtual lockstep.
 
2020-05-19 9:14:59 AM  
1 vote:

FunkJunkie: I watched a YouTube vid about WeWork a couple of weeks ago and even after I couldn't figure out how exactly the company came to be valued the way it was.
The vid explained 'how' it happened but the 'why' of the way money starts to behave at that level is something I cant wrap my head around.


Somehow wework ended up on the tech startup track where valuations at the highest levels are basically operating under the assumption your company will become a monopoly like amazon or facebook or google. Obviously theres a lot more friction when your monopoly entirely depends on acquiring vast amounts of real estate
 
2020-05-19 9:05:44 AM  
1 vote:
I watched a YouTube vid about WeWork a couple of weeks ago and even after I couldn't figure out how exactly the company came to be valued the way it was.
The vid explained 'how' it happened but the 'why' of the way money starts to behave at that level is something I cant wrap my head around.
 
2020-05-19 5:41:59 AM  
1 vote:

433: The people behind Pets.com must be losing their goddamned minds every farking day.


Webvan would like a word...
 
2020-05-18 10:10:37 PM  
1 vote:
We Work.....wayyyy over there... at home.
 
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