Following WeWork's warning that it could be headed for bankruptcy, FOX Business gives a timeline of the long-suffering co-working company's years of troubles.
In the era of low interest rates, a lot of stupidly-high valuations happened in tech. Many of those idiotic valuations were predicated on the idea that companies could afford to lose money for a long time in pursuit of “market share”, and then pivot to profitability when they wanted that. Never mind that if your business model is fundamentally about being the cheaper alternative — waving at Uber — the only path to being profitable goes through gaining monopoly powers and hiking prices to much higher levels that consumers will hate — waving at Uber again.
The truly dumb thing about WeWork’s valuation was that it was being valued as if it were a tech stock. It was a renter of office space, period. All of its “secret tech sauce” was a combination of lies and aspirational bullshit from its bullshit-artist CEO.
Oh yeah, that’s completely stupid. Getting really sick of these ‘undercut-everyone-monopolize’ companies. Good to see them burn in that case. Wonder if we’ll look back on this era as a bubble.
In the era of low interest rates, a lot of stupidly-high valuations happened in tech. Many of those idiotic valuations were predicated on the idea that companies could afford to lose money for a long time in pursuit of “market share”, and then pivot to profitability when they wanted that. Never mind that if your business model is fundamentally about being the cheaper alternative — waving at Uber — the only path to being profitable goes through gaining monopoly powers and hiking prices to much higher levels that consumers will hate — waving at Uber again.
The truly dumb thing about WeWork’s valuation was that it was being valued as if it were a tech stock. It was a renter of office space, period. All of its “secret tech sauce” was a combination of lies and aspirational bullshit from its bullshit-artist CEO.
Oh yeah, that’s completely stupid. Getting really sick of these ‘undercut-everyone-monopolize’ companies. Good to see them burn in that case. Wonder if we’ll look back on this era as a bubble.