WeWork set to go public via SPAC, after its first IPO attempt was the biggest story of 2019. SoftBank still plans to hold a majority share of the company. Ahead of the IPO, WeWork is marketing itself as a SaaS company: space as a service. Interested to see what happens!

edit: I realize I posted this after market open, and WeWork has officially begun trading!👀

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Nathan Worden's avatar
When it tried to go public in 2019 it had a $47 billion valuation, now its $8 billion. Quite the haircut!
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Panos's avatar
@panosOctober 21
And valuation's still too high. lol
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Nathan Worden's avatar
@panos 😄fair! It’s still SoftBank backed after all!
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Grace Gruber's avatar
@graceOctober 21
Author
@nathanworden basically a shaved head! I will agree with @panos , the valuation is quite high given issues that need to be addressed.
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Gaurav Kotak @ Fincredible's avatar
Probably an unpopular opinion but BOWX, BOWXU (the SPAC Wework partnered with to go public) is the only SPAC I've ever purchased. It was trading at par ($10) so I bought some and imo inexplicably dropped $9.5 yesterday so i doubled down. so far, so good.

I think there is so much negative sentiment based on the train wreck of the company that were in 2019 when they were commanding (or hoping to) that 47B.

Now I feel it's quite different

different valuation, different management (that care about profitability), different hybrid work conditions (should be tailwind). While still GAAP loss, that's trending in the right direction. I think the brand for hybrid workers is still awesome. I'm in coworking space in Dubai (some generic one) and I tell everyone I work from a Wework.

I'm particularly interested to see them scale the 'as a service' model where it's asset light. I forget what it's called but will pay attention in next earnings call. IF that trends positive, I'll likely double down again.
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Nathan Worden's avatar
@gkotak great points, well explained. WeWork definitely has the ‘cognitive referant’ lead of the co-working office space.
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Grace Gruber's avatar
@graceOctober 21
Author
@gkotak super interesting points made! I completely agree: while the company still has the same backbone, new management gives me hope. This isn't Adam's company (really) anymore.
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Sidni Standard's avatar
“Space as a service” that’s a new one! So basically they’re ADMITTING that they’re in the real estate business??
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Gaurav Kotak @ Fincredible's avatar
@sidnistandard what I love is now they're admitting they're in the real estate business. Ironically 'space-as-a-service' is the part of their business which is actual low capex tech and not real estate and as per prior comments, what I'm particularly interested in tracking.
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Sidni Standard's avatar
@gkotak “low capex tech” is something I’m definitely going to have to educate myself on!
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delos's avatar
@diggityOctober 21
@sidnistandard lol repurposing “SaaS”. they just couldn’t help themselves. the more the admit what they really are, the better.
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Grace Gruber's avatar
@graceOctober 21
Author
@sidnistandard the SaaS comment was hilarious to me, but also somewhat smart: investors seem to like the acronym SaaS 🙃🤪 I would also like to think this is an admission of being in the RE space as well!
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Aquiba Benarroch, CFA's avatar
Do they still report a positive “Community Adj EBITDA"?That metric was among the top most misleading non-GAAP metrics ever
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Grace Gruber's avatar
@graceOctober 21
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@aquiba the metric is sooo bad it's funny. Honestly, I'm not sure if they still use it. I'll take a look and get back to you.
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Panos's avatar
@panosOctober 21
If you're going to buy someone's bags, why not buy Balenciaga's?
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Mya Parker's avatar
Do u think Airbnb $ABNB should acquire them?
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Panos's avatar
@panosOctober 21
Why should they? WW has nothing proprietary. They rent floors and buildings, divide them into small offices and rent them.
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T◎m's avatar
@tdozziOctober 21
I almost think AirBnB is turning into WeWork. I know a few people who travel around the US booking Airbnb's for months and just doing remote work. It is a very interesting trend
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Grace Gruber's avatar
@graceOctober 21
Author
@myaparker personally, I don't think $ABNB should acquire. It's not in their product market and is unrelated diversification (commercial vs residential with thin margins). Purely based on academia related to strategic management, unrelated diversification is not good for investors. I also don't see M&A working for these companies.
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Mya Parker's avatar
@panos @tdozzi @grace yes thanks for all of you guys perspective just wondering as I’ve seen some people speculating on that idea before
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