Is it possible?

WeWork is the company that provides shared workspaces for cool and hip new businesses.  It has just filed for an exchange listing (IPO).

According to documents lodged with the US Securities Exchange Commission (kinda sorta the US version of ASIC), WeWork:

has visions of $3 trillion in revenues, and, more realistically, has lost $4.3 billion over the past three-and-a-half years, including $904 million in the first half of 2019

Put simply, WeWork’s costs are much, much higher than its reported revenues.

This beggars the question?  Could it be that WeWork tenants/customers pay their rent in cash, $100,000 at a time in an envelope?  Maybe that is the how the company has been able to support itself?  Perhaps the rent money is an aggregation of contributions from miscellaneous restaurant workers at $5,000 or $10,000 a lick.

NSW ALP officials are “allegedly” consulting to WeWork.

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6 Responses to Is it possible?

  1. FelixKruell

    This beggars the question? Could it be that WeWork tenants/customers pay their rent in cash,

    An entertaining conspiracy theory. However, more likely, there simply aren’t enough tenants/customers, or they aren’t willing to pay enough to cover WeWork’s costs. Which is pretty common for a start-up trying to quickly gain market share.

  2. Pyrmonter

    Ahem, TAFKAS should refresh his memory of recent financial history:

    https://www.usatoday.com/story/tech/2014/10/23/amazon-posts-loss-for-3rd-quarter/17783495/

    (This is not to say that WeWork will work: it seems a fairly simple idea in a market already well serviced by companies like ServCorp, but … some loss makers ultimately make good)

  3. vr

    Adam Neuman the CEO also sold $700m in stock. It doesn’t bode well for the stock.

  4. old bloke

    vr
    #3141195, posted on August 26, 2019 at 6:29 pm

    Adam Neuman the CEO also sold $700m in stock. It doesn’t bode well for the stock.

    A relation of Alfred E Neuman?
    “What, me worry?”

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