Last Private Capital Raise valuation was $47B. SoftBank cost basis is $35B valuation. In IPO to public markets institutional investors are only willing to pay $20B valuation. We Company has $4B bond sale for raising debt but it is contingent on IPO being done. So they are in a position now where they are running losses of $1B+ a year and more growth means more losses.
I saw a one hour interview with Newman the CEO and Founder of We Work and was interesting. They are trying to optimize use of office space with use of technology. But overall business model is risky with company signing long term leases and the. Renting space to clients at monthly lease. Going forward they are shifting to place management business model where by somebody else owns the buildings and long term leases and they only manage them. I am unconvinced the business model is robust and built to survive a recession and major commercial real estate downturn.
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