We is worth $ 1 – 70 % below where it last raised funds , according to Aswath Damodaran , professor of finance at the NYU ’s Stern School of Business . He estimates that WeWork has about $ 23.8bn of real estate debt and lease commitments . Its business model , which relies on companies turning profitable as they age , is built on a knife edge that is sensitive to even the smallest economic friction , he says . Relevant document : Runaway Story or Meltdown in Motion ? The Unraveling of the WeWork IPO ~ Aswath Damodaran , ~ 9-Sept-19
We is worth $14bn – 70% below where it last raised funds, according to Aswath Damodaran, professor of finance at the NYU’s Stern School of Business. Damodaran estimates that WeWork has accumulated $23.8bn of real estate debt including lease commitments. Its business model, which relies on leases turning profitable as they age, is built on a knife edge that is sensitive to even the smallest economic friction, he said. Relevant document: Runaway Story or Meltdown in Motion? The Unraveling of the WeWork IPO ~ Aswath Damodaran Blog ~ 9-Sept-19