How does WeWork get a $4.7 Billion valuation? Are investors idiots? It's nothing but office building leases with short term sublets. What's the barrier to entry? How do they support the rents you need to make $4.7 Billion?
WorldCom and Enron were bad, but at least they were defrauding with new technologies and/or new regulatory regimes. Smart crooks can always exploit new stuff, but WeWork is just buildings. What's wrong with the financial system that this stuff happens?
The biggest part of the buy out was to buy back his stock, so that goes back to the high valuation. Most of the rest was a line of credit. The crazy part was a $140 million consulting contract. Why would you do that? What can he do for that much money?
With all that money flying around, it seems like I shudda been able to grab some of it, but that never happened.
It makes no sense.
They should have started a taxi company but convinced their employees to use their own vehicles and the regulators to let them by cloaking the whole thing in tech-y Internet lingo. Or maybe something similar but with vacation rentals.