WeWork not work
A few months ago, it was still a strong force. If it was successfully listed, this rent-receiving stock with only a few years of history will be bigger than the new land (016), but people are not as good as the days, or investors in the stock market, the original fund And the richer is more clear-minded, seeing the king’s new clothes, so WeWork suddenly found himself running naked, the cash on hand is only enough to use at the end of October, even the expenses of the demobilized staff can not afford, the inspirational story becomes a cautionary story.
I don’t doubt that the concept of shared office has its own needs. The question is whether it is a profitable business. Its business model is too easy to be imitated. Unlike Google and Facebook, there is a strong network effect. The long-term burning of money has taken over the market. However, renting a property with a long-term lease and subletting it in the form of short-term tenancy has a great operational risk. However, under the packaging of Wall Street, WeWork is regarded as a technology company to sell hard, selling the vision that can not be achieved.
This time, the soft library will be wet and the scalp will be saved. We will pump 9.5 billion US dollars to WeWork. After the transaction, we will get nearly 80% of the shares. Whether the soft library can be retired or not depends on whether we can reverse the WeWork lunar eclipse. The $100 million defeat and the final availability.
Founder is the big winner
Although the 40-year-old founder Adam Neumann is facing a fate, he is still a big winner, regardless of the $700 million he has already sold through the sale of the property to the company and the reduction of the shareholding. Billions of dollars, and the sale of stocks to the soft library cashed out $1 billion.
WeWork’s story teaches us not to think that professional investors and financial predators must be drunk and I am sober. I have long pointed out that even if the management of billions of fund managers is easy to listen to the story, and ignore the objective The data, like the retail investors, is subject to the “fear of missing out" demons, and the robbery food is sometimes the same as the aunt. Therefore, the initial unicorns listed in recent years, the valuations have been robbed to high.
Recently, I read two books written by The Wall Street Journal, “Bad Blood" and “Billion Dollar Whale". I have seen it with great interest. I have a lot of inspiration for the “experience" of predators and professional investors. Don’t miss it.
The incident once again proves that the founder has the best date of consumption. When the company develops to a certain stage, it may need another type of leader. If the founder is too attached to the stack, it will become the negative asset of the company’s development, and the founder The different rights arrangement of the same share is a major obstacle to this transition. This time, the soft library has to spend 10 billion yuan to make Neumann give up the voting rights of 1 share equal to 10 shares. It can be said that the cost is high, and it is a veritable “public and me win, word you lose" game.