Valued at $20bn and with expectations that Softbank will soon invest a further $3bn to lift its value to $35bn, sceptics question WeWork’s viability in an industry prone to painful ups and downs. Even so, the company has reimagined the corporate office, slashing the per-employee cost with efficient use of space and creating a happier working environment. Furthermore, it has insulated the parent company from the inherent mismatch in leases by creating individual special-purpose entities that own individual leases and is increasingly using revenue-sharing leases. The company’s success can be attributed not only to its innovative approach but also to its ability to attract top talent from other companies – including Apple, Google and Facebook – which have all been looking for ways
Valued at $20bn and with expectations that Softbank will soon invest a further $3bn to lift its value to $35bn, sceptics question WeWork’s viability in an industry prone to painful ups and downs. Even so, the company has reimagined the corporate office, slashing the per-employee cost with efficient use of space and creating a happier working environment. Furthermore, it has insulated the parent company from the inherent mismatch in leases by creating individual special-purpose entities that own individual leases and is increasingly using revenue-sharing leases. And even after April’s bond issue, it still has relatively little debt.