Rents out warehouse and puts in a ping-pong table: WeWorks: we are a tech company Investors: Surprised Picachu face

I’m predicting WeBroke in the not too distant future

WeWork is just an expensive middle man on property management.

For once, I found a video that aged well.

WeWork is a Lease for Lease real estate business model or in the UK we call it Rent to Rent. Not ideal for long term investment.

Wework is essentially rental arbitrage. Rent for long-term in order to make short-term gains

I know a guy whose office is under an umbrella at his local beach. Apparently he does not have to pay a cent to work from a beach front location.

The great achievement of this company is how they got this much investment.

2:48 but it's unclear what would happen if suddenly fewer start-ups and freelancers were looking for workspace, which could happen in an economic downturn.

Or you could just go to the library for free

Starbucks or Macdonalds are much cheaper and no need to sign a contract

Every 15 months they need new customers. 12 bad months and this company would be in the dumps.

WeWork is the next Theranos: a pseudo "great and innovative idea" based on nothing but good hopes. It's just a matter of time until that bubble bursts. Just wait and see...

love working out of WeWork but would def short the stock at IPO

Let's not forget that some properties that Wework rents are owned by Adam Neumann, the CEO.

WeWork has some nice locations and offices but prices are too high. Cheaper competitors offering prices at a fraction of the prices for contracts as little as 3 months or even monthly. Just like many gym memberships people can get on monthly basisas they do not want to be committed to long BS memberships.

I am a frelancer and home is the best place to work, doesn't make any sense to rent an office, if i need to meet a client i go to a nice cafe one block away, my business is very profitable without office

During a recession this goes down fast

We often say 'no risk no reward' but I think that is suicide for expanding your business.

I'm an electrician in San Francisco, and I had the misfortune of working on a WeWork build out. Only one, because they are such a pain to work for, no contractors will work for them twice. And I'm pretty sure The standard size of their offices would be considered a crime against humanity!

It’s a fraud! Please stay away unless you know what you are doing.

Couldnt you just sit in a hotel lobby and do this for free?

Why would you need an office space when you can work from home. Labs or production sites are more important

going back to this video 4 years later. prophecy.

They provide little to no economic benefit. In their own words, may never reach profitability. Questionable business practices (we work bought new name from own CEO for 6 million). This company is going to get slaughtered

WeWork competitors in my country is half the price which is still expensive. WeWork is valued for creating communities in the US but they will have a hard time in other countries with different cultures and values. Just like Uber sold it’s business in SEA to Grab and Didi in China, they fail to understand their partners and clients in the region. WeWork business model is flawed because tenants could just jump ship to others if it gets too expensive. Or oven jump home. Co-working space sounds great if only they can concentrate same genre of startup in one place. But most countries already have government backed startup agencies who have coworking space like Singapore, Malaysia or Thailand.

Go to the basics, become a customer, simple: when you go to rent the rent is higher compared to independent offices, but you are in a very common space environment, you expect that collectivism makes the price of the rent go down, but its goes up, so look at it this way you can rent an apartment with a shared restroom , living room and kitchen....and the rent is higher then if you rent an apartment with all these amenities private only for you... that is why we works does not make money, its pricing its just not reasonable to the expectation of the customer it is flat out wrong. Not logical.

In my experience most freelancers choose wework for client hunting and once their purpose is done they leave and try another location.

I agree with most commenters that WeWork does not offer any real innovation; HOWEVER, you have to realize that people are willing to pay BIG MONEY for culture and, let's be honest, our friend Mr. Neumann would make a pretty spectacular cult leader.

Wework shows off how big companies are signing up, while CFOs at big companies are laughing at how they're taking advantages of wework.

Bridge to nowhere....so they have $47 billion in dues. ...Soft Bank is a big investor in this cash burning company 😅😅😂😂😂😂😂

you know, there's something called a library.

Just forget about the business model, who will make the company public on recession time.

I would not invest an enemy’s money in this. Are people blind, this is going bankrupt any sane mind can see through this.

Would've thought this was just published

Wework makes a great place for networking and generating leads for many businesses.

Why can't the freelancers work IN THEIR OWN HOME???!!

Hmm, we are having fun watching weBubble burst..

Oh, oh, looks like We Work is about to become We Don't Work :-(

Many comments suggest a library, McDonald’s, Starbucks, or working from home using Amazon services. I think too many people are missing the point here. I’m a small startup, marketing company focused on MedSpa arena. It’s me and my partner looking to hire two to three more people, have a creative area, a vibe, an energy, and for potential employees to take us seriously when we recruit them. Having them meet me at my home (current office) and/or public space severely hinders the quality of candidate willing to join a team. We went to look for office space to make our own and prices for shell spaces were out of control, the minimum was $2,000 a month not including any furniture, finish out, decor, etc ... The barrier seemed huge. We Work and it’s competitors seemed like the logical solution for us to get started quickly and grow big enough to eventually have our own finished out space after a year. Also, I’m confused by the video. One graph shows a huge disparity between space they lease and how much of it is occupied but then they say they are 85% occupied a few minutes later.

Im a little confused. Does WeWork own the properties that they are leasing out to tenants or is WeWork leasing the same buildings that they are leasing out?

"WeWorks fexibility"... which flexibility? The 15 year lease flexibility? Also WeWork tries sooooooo hard to proclaim their business as a business in the Tech industry... which it is NOT! Clear branding to sell to fools. Also this video lacks the many pages of conflicts of interests current stakeholders have. The weird dude pretending to be the CEO leases buildings to his own company, tried to have the company buy the rights to the name from him and used his stocks to get insane loans... All that these C-level managers are doing is cashing in and letting the idiots deal with the mess once this balloon gets popped.

I think it's a rare case where the more you expand the higher losses you'll make. Wework cannot guarantee the 15years of occupancy, so seems like it's destined to fail, but I may be wrong.

Once the start up companies making money, they will plan their own office space and leave wework

To mitigate some risk, WeWork needs to start diversifying their business model to include more land acquisition and subsequent development of their OWN buildings, not developing leased buildings they don’t own. What they are doing now is a recipe for disaster.

This is lunacy...irrational exuberance it will end in tears...especially for Softbank

This appeared in my recommendation watch list. This video clearly didn’t age well lol

I’ve been in a we work building and it’s beautiful but crowded (nyc).... it’s good for people starting out their businesses and needed to impress investors or possible clients....

WeWork is the Juicero of rentable office space.

when the market crash who's on the hook for all those leases?

Those membership fees dont cover weworks costs.

I still do not understand the value.

Ponzi pump and dump. What’s wrong with it lol

Saying 'WeWork's Business Model Is Risky' is like stating 'Touching Electric Wiring May Not be Great for Health'. Not necessarily a lie, but definitely an understatement. This company is a scam made to profit its CEO, who's already got the money he wanted out of it.

So is the idea to lease TRANSITIONAL WORK SPACE? because if someone makes it why would they continue leasing? You might lease if you can move up and then obviously buy you're own property. It's basically rent space for upstarts.

If they supplied all the computers and equipment you need, now they helping people business!

WeWork will NotWork with the IPO

WeWork and Airbnb should talk

Anyone can flip an industrial warehouse and rent it. There is no moat or protection from other companies entering.

It is interesting to whatch this video in fall of 2020

Anyone here after the bankruptcy news?

With the economic phase we are approaching looking to smother cap intensive projects imagine being a cap intensive start up they are not just screwed but rammed.

Can someone please explain why the companies which lease office space out to WeWork don't just lease the offices directly?

How to make loads of money: short this or buy long-term puts. This is basically a sublease landlord without the stickiness of leasing out apartments or homes. Valuation is obscenely optimistic.

I install the office space for WeWork in London with a company I work with. An they know how to spend a pretty penny 💷

The company has extremely unethical practices. It's very evident at all levels. I have interviewed and had one of the most horrible experiences. They are just hiring like crazy, but lacking quality checks. Extremely incompetent hiring managers.

Actually basic model of wework is flawed...example, you have 500 dollar, you want to invest this money into some sector, most effective way of investing and it will minimize the risk is ....after investing you should have real asset in your hand....you should have a solid commodity... some land, some stocks, something solid.....simply rent out property or deallocation of property, is very risky for the stack holder.....and risk is not worthed.....that is why you see,,, initial rapid growth(bcoz of rapid expansion)...but now it will become stagnant (this kind of business needs consistent and steady expansion, which will become difficult at this size, there are alot other factors...etc)....and later it will be acquired by some big property firm.....another factor is backfire from public....bcoz when you lease out property....you basically degrade it market value in longer run....bcoz of lack of consistent flow of cash.....and in some cases keep the properties empty... ...which is not good business to the surrounding or neighbour area.....hence will face backfire from the public.........so on on.....

Yeah they are going to file chapter 11 within 5 years

>I make churros >I use computer I AM TECH COMPANY, GIVE ME MONEY! 👌🏻

I hate working out of weworks... I had a company offer to rent me a spot and I still declined when it wasn't even my own dime!

co-working space is now becoming trend. But then, competitors are everywhere...

AND…….they’re gone.

Long term lease liabilities paid by short term lease assets. Asset Liability mismatches have sunk many companies.

Now they're saying this after we all know it's going bankrupt.

Why would an office deal with a lease owner instead of the actual building owner if they want an entire floor?

How does anybody think this will work in the current economic environment. With stores closing and companies laying thousands of people off.

There is one thing WeWork offers and I cannot believe everyone misses that. This is like every analysis of Tesla that focuses on Tesla the car company and comparing that with Ford or GM; that is not a fair comparison. Analysts completely miss the “Musk effect”, the effects its public persona has on the company. If you were to remove EM as CEO of Tesla you would lose an important component of its business model which has a cult following to some degree. Similarly WW has something that other companies in the lease rental space don’t have. Not saying this one thing will prevent it from failure but comparisons with similar companies is not a fair one ignoring the subjective aspect of the business

Its just a fad. Just work at your home office or starbucks. Why would want to add expenses for working?

They've focused on only one type of business. Office space. What about all the other business. Imo Restaurants would be a big one. Seasonal stores are another i.e Holloween. Im not sure a company so committed to asking others to think outside the box yet soo set on being in one will survive.

WeWork's business model… not just risky, more likely bogus..

Their biggest mistake is the liability from lease length. 15years average lease?!?!?!? Oof

it is good for richer homeless shelter. Adding coin showers will make this bussiness perfect.

This really sounds like a miniature case of the 2008 housing crisis

Apart from the WeWorks company itself, why would seroius businessmen use that kind of service?

NET (Cloudfare) short term analyst rating is buy with $24 currently $18.50

How this escalated…

No future for we work's current model in India

it's just regus with good looking app

In an economic downturn many things would be uncertain as people don't have savings, instead full of loans and mortgages.

Why can’t a big company just build out their own space?

They don't care as long they can unload it to retail investors

This is really just office space for rent....

Wsj: “weworks ipo is coming as soon as next month” Me in 2020: 🤣🤣🤣🤣

You were right

The skeptics were right.

90% of start-ups fail. If you can't create a billion dollar company at Starbucks, WeWork isn't going to help you

Who likes short shorts, I like short shorts 🎵...

Please use metric system as well in your videos.

It would be different if they were a traditional real estate development company who actually owned the real estate and used technology and hype to obtain customers. Plus, one-day and one-week leases are models that are in increasingly more demand with so many free lancers and the gig economy. But they are really just a fraud.

All those valuations are plucked from thin air.