See, most of the internet companies make money from advertising. Apple (hardware), Amazon (advertising + shopping + hosting etc...). I think Amazon's business model is superb.
Nova El Amazons business model is dominate, destroy, control, then inflate prices. The diaper stranglehold revealed this business ethic devoid of morals. It'll end up as a company that promised much but delivered little of actual value to its customers. Prime delivery is supported by MarketPlace sellers taking shipping hits. That's unsustainable in the long term as Amazon win but sellers lose. The beauty of Amazon was low prices with the sacrifice of instantaneous gratification bringing efficiency through no store chain costs. It's lost sight of its founding principles. Very soon the gloss will wear off of the disrupters and we'll see nothing but profiteering at the expense of their customer base deluded into thinking these vast companies genuinely cared about and protected their customers. It was a wonderful idea but greed took over. What next?
"You can't run a business without an adult saying no" I LOVED that sentence. In Egypt, we have a proverb : He, who lacks an adult supervisor, must go and buy himself one.
@@96hoangkieutrinh84 It means you must have an adult who is willing to say no to your enthusiasm and is not eager to run to quick victories but rather slow and sure winnings.
“On the internet, it is easy to find studies that support both sides of an argument. In general, you should never accept the validity of people’s ideas because they have supplied “evidence.” Instead, examine the evidence yourself in the cold light of day, with as much skepticism as you can muster. Your first impulse should always be to find the evidence that disconfirms your most cherished beliefs and those of others. That is true science.” ― Robert Greene, The Laws of Human Nature
I've really liked this simple line to sum things up "WeWork was a real estate company being valued as if it were a tech company". Expecting exponential growth with software isn't too crazy; expecting exponential growth from real estate is.
@pcbs5211 that's where I'm confused, I thought they did own real estate and then they would turn that real estate into office spaces and rent those offices out to other people?
Even in software, it's unreasonable to expect exponential growth without a concrete and realistic plan to profit. Most software companies don't see exponential growth either. Thinking every shiny new thing can do that when only a handful of outliers had achieved it in a different market is exactly what led to the hype and wistful thinking that create things like wework.
I can't believe that the Bloomberg piece didn't mention it and I've seen a lot of the comments here don't get it either. The reason WeWork failed is because *they were renters themselves* . They basically didn't own any of the spaces that they were at. It had such a spectacular failure because there's no assets, no buildings, no real estate, nothing. The chart in the video comparing to IWG is completely misleading because if you were to compare the *owned* real estate square footage, WeWork would be zero while IWG does own some of it's buildings.
I got that. Many startups today are about being a middleman with an app, to make life easy for millennials. Find a hotel, find a ride, send news mailers, rent a house, get a date, find a place to work. "We have an app with a catchy name, a charismatic CEO and cult-like culture. It's a revolution!
I'm Curious; What's wrong with Vox ??? . I'm asking this because Jousua Topolsky was the one who started the "The Verge" and eventually "Vox Media"...was the same guy on whom Mr. Bloomberg entrusted with revamping the Company's Digital side and making it even more accessible to the wider spectrum of audience. Otherwise; 10yrs ago who would have thought that the company like Bloomberg can also mobilise the not so elite-business croud. P.S. I'm in no way taking the credit of those who are currently at the helm of this division; it's just that the I believe Topolsky was the one who spearheaded the new outlook of the company.
It's great to have optimists. They get people moving. But in a company, you also need the realists to stop those people from moving too far and fall off a cliff.
And then there are some of us who are in the middle. We're optimistic about our expectations but also concerned about what the numbers tell us so that we can be flexible and plan accordingly.
Hahaha. You just described SOCIALISM and why it always fails! Keep in mind that Socialism is not welfare. Socialims-Communism is about government control of the business.
The guy who says "I thought I'd give you a tour of where wework" and repeating the joke twice kinda sums up the whole company to me. Like people who thought something that was mediocre was really profound
I think it also provided presentation spaces, conference rooms and other infrastructure that companies generally need. But yea, I think it lost sight of core ambition.
I remember someone argued that Uber is a tech company but their service is cars instead of rooms and use an app, therefore WeWork is a tech company. How absurd can people be xD
My company still uses WeWork, which is incredible through the whole crumble and covid era. Office space is nice, pantry is always interesting. Their biggest problem is that people overvalued them as the next frontier or something.
The spectacular rise and fall of WeWork. Anyone could see that when it was starting up it was going to be destroyed by the next recession. It didn't even take that long, such an overvalued startup.
@@roadtomanitoba9753 not like it takes much to trick boomers into think your idea is new and revolutionary "We have an app" "Oh you mean like that snapchat"
no, they were in the red even up until recently... getting cash doesn't mean you're profitable. it just means your revenue flow is of a large magnitude. you have to consider costs as well. just having large CF may get you new funding but eventually everyone's LF profitability
The idea is great actually. And it would be no surprise to see other companies doing the same in the future. The problem with WeWork is bad management and bad execution. Being greedy is usually looked down upon in society. “Lack of oversight” should be looked down upon as well.
@@Funkotronimus How?? Is there really that high a demand for working space that EITHER current landlords/property giants can't meet OR is missing something that WeWork alone had figured out that can also guarantee WeWork not only the money to cover it's 15 year or so leases on its buildings but also profits??
@@crimsonstrykr what I was referring to was how WeWork had dabbling in random areas that had nothing to do with their primary focus of leasing work spaces.
I remember going to their annual 3 day Summer party in the UK back in 2017. It was extravagant as expected. The first WeWork employee I met was a bit tipsy, said hello and then proceeded with "Our CEO smokes weed...how awesome is that." It was at that point I knew...
This is the last thing the reeling real estate market needs right now, as an Air BnB investor i think due to the similar mode of operation like WeWork, we might soon be run off the market. Essentially why i'm at large for exit measures or where to allocate $1m
after studying the trajectory of great assets like real estate dividend paying stocks and gold, my conclusion is to buy and invest in what you can afford today! working with a financial advisor can certainly help
Just because there are opportunities in the stock market does not mean you should dive in headfirst, if you're unsure if to remain in the housing market i suggest you consult a professional just like i did before making any move, That's how i've been able to stay afloat for almost 5 years with proper portfolio allocation earning about $1m in investment returns
sounds great! could you please suggest this expert you engaged their service? I have lots of difficulty sorting out the right investments on my portfolio
@@Curbalnk How much is WeWork worth? In the beginning of 2019 it was valued at $47 billion. Two years later after WeWork SPAC IPO (it was the merger with BowX SPAC) the company was valued at $9 billion. As of November 25, the WeWork market cap is $7.3 billion. Lol.
She goes by ‘’Heather Ann Christensen’ I suggest you look her up. To be honest, I almost didn't buy the idea of letting someone handle growing my finance, but so glad I did.
3:25 WeWork's $10B valuation happened when it had 23,000 customers paying as little as $45/month. Can investors not do basic math?! That's about $12M/year. Assume the average is 5X higher by magic, that's only $60M/year. Even at this crazy level, revenue of $60M/year would imply a 166X valuation. Further, if an investor puts money into a startup for some post money valuation, said investor hopes it'll go up 3-10X depending on stage, so they were implicitly saying, "Oh, don't worry. WeWork's gonna grow their revenue 500X to 1660X." Ignoring all this craziness and investing anyway shows how out of touch with reality private startups & investors have become. The great thing about WeWork is it was a vigorous reminder to investors that growth isn't everything, and that sound underlying economics are King. Hopefully we'll start to see companies that have given their business models more than a glance.
@@sharefactor still, the valuation of 47B is 26 times 1.8B, and that's assuming the revenue is magically all profit. Assuming things are linear, they need to increase the number of customers from 0.5M to 13M. A googled estimate puts the global coworkers at 3M. I'm not an economist, real estate or business person, but it seems like crazy numbers.
Baby Boomers think it does. If you make an app they wonder why you're not making hundreds of thousands of dollars, and don't realize any 12 year old could do it.
@@Wedneswere I'm a software developer by trade. It is completely false to think that any 12 year old can make a functional app for a company. Making an app vs making a fully-featured app with actual functional requirements are two different things. Why do you think we get compensated by LEGIT companies the way we do if "any 12 year old" do it? Meanwhile, the company's that I come across who attempt to hire senior level developer Talent at entry-level rates, are always crappy failing companies. You have no idea what you're talking about.
@@demetriusmiddleton1246 Well, it helps if your main product is computer hardware or software. But really, the whole category of "tech company" has become a meaningless buzzword used to attract investors. Since the 90's everyone has been trying to find the next Apple or Microsoft, and startups know this and exploit this.
@@billvolk4236 you are objecting to a company calling itself a tech company. If you objected that then I'm just asking you simply to Define what a tech company is. Not what helps, or what doesn't make someone to take company , those are easy accusations to throw out there. But I also understand you were just making a joke. So you probably didn't want to have to think about what you're actually saying
This story is very timely especially given the high speculation in many tech industries. Really goes to show how "slow and steady" really does win the race
And it's a great idea honestly except those college kids without clue also tried to run the company and it failed. University is run by hardened management regents that eeked out the living for hundreds of years, connecting government funding to private doners. Wework couldn't hold up a candle to that
At a university, there's always a critical mass of people to hang out with. No matter what your interests are, there's always a whole bunch of other people who share not just one, but many of your interests. Plus they've got all the time in the world to hang out with you. At a co-working space, you go there and there's like five people there and nobody has anything in common with you. And they're not there to hang out with you anyway, they're there to get work done. Worse still, if one of them does share your interests and is working on the exact same thing, they're not your friend, they are your competitor. You're eating into their profits and they're eating into yours. Best case scenario, you and them combine efforts and start a company together. But that's not the best case scenario _for the co-working space._ It's their worst nightmare. You just use them for a couple months until you've found enough like-minded people to start a business with. And then all of you are out of there all at once.
@@dewinmoonl I mean, how does WeWork differ from all other office spaces? Office area can be rented in every possible variety, there are start-up incubators that resemble WeWork's offices in every inch. The mystery of WeWork is that this isn't a revolutionary idea and that anyone can rearrange their office space to sth similar in a couple of weeks. When you turn down the marketing you'll see that it's just another real estate company, not a multi-billion tech start-up.
My startup rented office space at WeWork in the early days and I already wondered how the business model could be profitable. WeWork more than often provided lunches, holiday presents, and not to mention all the free beer from the bars available on every floor. Every Friday a big party was thrown with tons of snacks, all the beer kegs being emptied and a lot of happy tenants as a result. People were even dancing on the tables. The vibe was awesome, I've met amazing people and I have really nice memories to an exciting time. Next to that, my company had really affordable office space.
I'm surprised that WeWork didn't just make a bid for IWG with all the cash they were getting at such a lofty valuation. They would have more than doubled their footprint overnight and acquired a profitable business. With so many bankers on the cap table I'm surprised they never thought of it.
ain't that obvious to see from those elites spending all limitless from money taken off from the people who really worked their ass off of EARN meager amount of money
Yeah I see it all the time when people don't actually earn the money they don't appreciate the value of a dollar from ex wife to children to people who have inherited money they just waste and blow the hard earned money of other people till it's all gone
"Let's make everything happen faster with more money" Ah... the classic corporate absurdity. If one woman can carry a child in 9 months, lets get 9 women in here and do it in a month!
Exactly what im saying, slow growth is better than a steriod injection from a large bank. If wework would have slowed down and stayed humble, it might have lasted longer or maybe even grown organically into a success
That happened to a company here in LA called Juice Serviced Here... huge early success, followed by lots of capital raised, followed by opening numerous multi-million dollar locations all over that were also cafes, followed by bottling in plastic and trying to sell in grocery stores, followed by bankruptcy. Everyone loved the product. Organic growth would have built a more stable company.
In my experience this is a common Japanese company philosophy. In the end everything is done sloppily and ineffectivly because the focus is on spending money
EXACTLY!!!! The king had no cloths, I can't imagine how sb can throw 4B at a company that it literally just renting office space. There are hundreds of companies like this. There is no innovation here, except for big talk.
I think in total SB invested $7B USD into it, and just loaned it/ themselves $2-3 billion USD more in October 2019. In comparison to IWG, the 30 year old mature company they are competing against, We shouldn't be valued at even $1B USD. In fact, SB could have bought IWG twice over with their investment in We. That's why you know it was all a scam from the get-go. If they had really wanted to change the world, they would have just purchased IWG and turned it into this magic vision for half the investment. Instead, the plan was to inflate a new company's valuation and the pawn it off on the retail investors of the world while we are at the peak of the current economic cycle. It wouldn't have been possible with an existing public company with an established, realistic valuation.
My guess was that was a work place? though I think some buildings was "open" to public to sit and work lmao... I could not do that!! Fuck me, sounds aweful you are right lol. Fuck that.
Don't you love these new all-glass buildings? Who needs privacy? Who needs cubicles? So much better to have everybody watching you and you watching them all day.
entrepreneurship isn't for everybody, so its no wonder you don't get it. Name one public library where people are allowed to congregate in large numbers, laugh, talk out loud, drink coffee? Where employees are offered storage space, play area for their kids, gyms, all things that are definitely existing in typical offices today, and out of all these things, We work was catering for all and more. The video clearly says the idea behind WeWork was nothing short of genius and it was actually solving a major problem, the let down was the poor management !!!
@@SadamYT It seems you don't understand. Let's start with the word "outcome". What are the outcomes here? Either the mouse gets caught in the trap or eats all the cheese. The first outcome is always true. A mouse that gets caught is always caught regardless of whether it ate or not the whole cheese. However, to have eaten all or just part of the cheese is not dependent on getting caught. See how your argumentation is just flawed?
@@RsDefcon What if he wanted to do that so he could cash out early and have less headaches to deal with? If we assume the charlatan route for him, then this makes sense. Avoid any further issues and run off with your gains than waste any more time on it.
CEO wanted out because he got 1.7 billion dollars. Sucker in this plot is Soft Bank and it's share holders. A company like Lockheed Martin, which in place for decades and has made stealth Fighter jets, drone, cyber security, weapons.... With big Governments as its customers is worth 100 billion dollars. how can 'We Work' with few real estate ventures be worth 47 Billion dollars? What was soft bank's CEO smoking?
@Facts Matter - The future for startups and their work spaces. When they start making huge profits (the startups) WeWork will lease out higher priced spaces on properties built to accommodate these companies. And yes it sounds far-fetched but they think they have something that no one has figured out
My local WeWork was just filled with very young adults that had recieved money from their parents to try and run a start-up. For most of them it seemed to be about being an entrepreneur, not actually growing all their niche webshops.
Maybe, but they should have not abused that VC money. When Masayoshi Son was talking about them expanding, they should have thought about making a profit.
exactly! this company tries to sell their gimmick by forming themself as a "family", all it does is making me cringe. When i work i still call my company a corporate, a business, not a family. A family is something that always has a bond with you since you were little, those that actually cares about you, not like company where they tries to backstab you everytime you make a mistake, those two-faced motherfuckers.
I worked in a WeWork space in London. Nobody had any friends outsider of their own company. It did not feel like a community at all. That special energy that brought people together must've only existed in the smug minds of the boardroom.
Yeah, this pretty much. When building an Internet startup there's a sense that it has to grow to global scale right away or else a bigger competitor will come along and swallow them so they blow billions of dollars growing without finding out if there's an actual market for the thing they're growing. In WeWork's case it should have been obvious to all that there wasn't - it's co-working. There's no special sauce there, no special technology, no patents, no IP, no meaningful network effect, nothing stopping anyone from just setting up shop down the street. Just Neumann blowing neo-new-age smoke up everyone's ass.
@@ankitdixit6389, you're stupid. It's a matter of public record that from 2016-2018, Amazon MADE net profits of $2.3B, $3.0B, and $10.3B. Amazon may be more than just an eCommerce company with AWS now, but they're profitable.
So, basically they created something that’s been going on at Starbucks for years... A bunch of people drinking coffee and “ working “ on laptops surrounded by a bunch of strangers🤔
I don't like working at Starbucks and these kind of places offer more amenities than a Starbucks does. Many of these also offer 24/7 access can't say the same for Starbucks.
@@jessicacole8404 I found myself being productive in an open floor plan I was doing it yesterday at a uni. library and I'm planning to give one of these places a shot, there's more companies out there than just wework.
@@jessicacole8404 Also if you wanted an individual office those plans are offered at some of these places to. It's not like your only option is the open floor plan.
We tried 5 x times to open an office with Regus and they had such poor customer to the point that we spent six months waiting for a contract and the keys. In the end we found other offices. So one of the things Mark Dixon could do as CEO is actually try to speak and listen to his potential customers.
Adam Neumann's WeWork failed long before Covid. Rebekah Neumann was the true downfall. Got a little bit of money to build the company, little bit of hype, and suddenly felt like they were going to take over the whole world and turn it into a new age spiritual utopia. Complete delusions of grandeur. Highly recommend the doc that just came out on Hulu, shows just how batshit they both were.
@Darius Kang The Japanese manufacturers I worked for that act EXACTLY like this. Sometimes the branch manager or national officer would drop in (with his yes men), inspect the workforce (beyond lunch breaks), and "encourage" applause and attention to his inspirationals during required briefings. I looked around the room, seeing almost everyone NOT BUYING IT (there's always one stooge clapping like an idiot). It was glorious.
I find how we work managed to raise so much money given the lack of lack of originality in the concept of the business business centres and incubator units have existed for years
I had a friend who worked for We Work for several years, until this past spring. She hated it and talked about the nonsense that would occur during their company outings and the rampant sexual harrassment that took place. She was so burned out and is so relieved she got out when she did.
SEVERAL years?? "Got out when she did"?? Uhhh..... This is another reason why toxic companies like this get as far as they do, people not willing to stand up & say something right away...or just simply leave. People that work at some amazing game-changing/disruptor unicorn that put up with this kind of behavior & rampant greed & fraud because they think it's their only option boggle my mind. Apparently Kool-Aid is a helluva perk...
@@Sdjjkshdjdjs banksters reporting on banksters yolked by laws written by and passed by/for banksters. Indeed only by the letter of this law is it not.
@@mishael7863 "Renting" your logo to the company at 5.9mil is a gray areas especially if the investors didnt sign off - but who knows we had to see what the SPA/SHA looked like. Soft Bank probably didnt even want anymore scandal either at risk of losing even more - just let him walk with that money, move forward.
I am a digital nomad working in Bangkok and I have not repeatedly sat in the co-working space since 2020, because of COVID-19. Today's workplace is a cafe, hotel, restaurant, or anywhere else that has WiFi. Where am I working today? Mangrove, the riverfront cafe and restaurant in Amphawa, Samutsongkram.
We have unlimited beer on the tap too. At least where I go at least. I would say more of a Starbucks the you need to pay to enter, but you always have a spot to sit at. Coffee is okay. People are generally alright. I work in healthcare, not there to make a start up, but like the atmosphere. and I get my work done, study in peace, don't have deal with homeless people being loud, and it helps me stay on track with what I need to do.
@@michaelambrose Before WeWorks came along that's exactly what Grown ups were doing; working from Starbucks and libraries. You might want to look up history and see all the scientists who spent hours upon hours working in libraries for research. Or we could look at entrepreneurs who spent hours in Starbucks going over their plans for a larger enterprise. Stop acting like this is some new invention that is beyond understanding. I've had meetings in coworking spaces before because my agent had one. It was nothing special
SoftBank is run by people with money to burn. Their philosophy is to throw money at anybody who asks. They want to lower the barrier to entry for small companies.
@@PedroSilva-re6ck When you have that amount of money, you bet on 9 bs ideas to find one that will give you a 1000% return and keep your shareholders pockets stuffed. You then create a monopoly with that company to keep the cash streaming in while you screw your customers. If you're the Wework guy, you're skimming off enough of that pile in salary to set you up for life before the company goes tits up.
Hey Johnny, could you please do a video on the crash of the Adani group of India? I mean they lost more than a $100 billion due to the release of just one report.
José Luis WeWork user here! I work in a 30 person branch of a much larger company and we rent an entire room at the WeWork. It may be pricy for just one person to use a WeWork (Versus working somewhere else like a library or coffee shop as you pointed out) but it’s way cheaper for my company to put our small remote office in a WeWork versus renting an entire office. One of the benefits of WeWork this video didn’t highlight at all.
@@JCizzleSoCal Some clients want to meet you in person. If you are a sole proprietor or small company, having something like WeWork makes it possible to meet your clients in larger cities like NYC. You would never be able to rent office space to meet the occasional client where they want to meet otherwise. I had like one meeting per year, in NYC or Philly.
I'd love a video where Ellen or someone from Bloomberg explained in-depth the appropriate controls a business should have before an IPO, with more examples.
@@Evocatorum except this is not a publicly traded company, so there are rules limiting who can invest to "sophisticated" investors and funds. To Softbank's credit/insanity, it didn't dump, instead it pumped $9.5 bn *more* into WeWork to keep it afloat only to see the valuation drop to $8 bn within months... ouch!! "We believe in this company... wait where is everyone else?"
@@shubhamtripathi2683 it's not crony capitalism where people conspire in economic activity to mutual benefit (e.g. recommending each other for fat contracts from government officials who invest in those companies). Investors bought into WeWork's hype and very publicly watched their investments tank. At most maybe SoftBank pressured other companies in its portfolio to use WeWork spaces.
I worked at a small company using a WeWork space for years and it was awesome! Great office amenities provided by WeWork for companies who typically wouldn't go out of their way to provide them.
Protip: if you go interview for a job and the company calls itself a startup even though it's 5 years old and has 2000 employees just walk out the door and don't look back
Technically it is not incorrect, many companies that have been in business for less than 10yrs call themselves startups. There is no definitive definition for it
@@EricZhouWu Startups have low salaries, long work-hours, shitty managers (early in, not promoted due to skills) and can collapse any day due to trying to hit a super-growth phase while begging for lot of investor-money.
youre half right, that swindler did make it exciting and it really was exciting but that excitement spent all of that money haha, theyre coming back now bit by bit, suddenly everyone is coming to WeWork when its not smart to take an office lease for 10+ years in fear of another pandemic or war
I agree, although there has been a lot of Science Philanthropy from big names like Stephen Schwarzman, Ted Stanley, Paul Allen and so on. We need to fund more of the younger scientist so they can afford to stay in the field. Most Scientist don't get their first federal grant until there 40's.
I was just thinking about it when I heard about this company. It's obviously Enron over fake inflated value company all over again. The former CEO and most of the people speaking in this video should be arrested for fraud.
I thought about both companies in this video. The other thing that concerns me is how many other companies are in the same boat but are hanging on with investor money.
I think that's a bit of an exaggeration honestly. Theranos never delivered the product they promised and lied about it when they realised they never would. Wework on the other hand has thousands of tenants who are perfectly happy with their office space. My company has its main office in a Wework place and we've successfully grown our business while enjoying the complimentary beer. So at least Wework has delivered the product they promised and as a customer that's all that matters to me, I couldn't care less what happens on the investor side of it. The day Wework folds, my company will just move on. If I had been a customer of Theranos, I wouldn't be quite as happy.
Not quite theranos, but definitely a bit of Enron - no board oversight, buying crazy acquisitions to boost stock price, hiding losses from investors, trying to convince people the company is a "tech startup" even though it's all asset based and has huge overheads... List goes on.
Bloomberg tries to destroy the idea of venture capital. They want to see money flowing only through investment funds of theirs buddies into big corporates of yet another buddies. FUD stories.
A startup I refused the offer from last year, cos they wanted to work in “coworking” space. No. Sorry. I need a desk and preferably a cabin. I need to think. Work isn’t daytime party. Work is a creative process, that which fires the engines of the company. If i needed to socialise, I’d go to a bar.
I remember someone at my company said "Wouldn't it be cool if there was a company run by extroverts for extroverts?". I face palmed so hard I accidently slapped myself.
No kidding eh. When I learned what we work was i was baffled. Everyone hates open concept offices, there's no way this meant anything. People yelled back hard and loud to shut up lol i guess they really wanted the company to take advantage of them.
@@Avenus112 It's an echo chamber in silicon valley. The dumbest ideas are getting billions in funding because there is a slight chance it might maybe.. possibly pay off. Investors are all gamblers and silicone valley is their Las Vegas. Also, open office spaces are the least productive. It's a goofy way of getting workers to be productive by making them feel like they are not working... well if you feel like you're not working, usually you don't work.
Are they being punished for failure? The outcome is unlikely to be unexpected. Not sure if you noticed, but even if investment banks go down, they get bailed out. Then they supposedly pay back the money, but by financial wizardry they kind of don't. Tax payer picks up the bill, banks profit either way. In other words, it is always someone else's money they loose. Rinse and repeat, until the general public picks up some basic financial education, and develops a basic bs detector for the stories told in mainstream news. I am not holding my breath.
whenever i hear "The fundamentals" remain strong, you know things are f'd up to the nth degree. remember when they said that in 2008, right before the great recession started.
@@Avenus112 no they're not at all the same, except both are startups. WeWork has a business model as shown by the profits of competitor Regus/ IWG. Theranos had a breakthrough tech that didn't work.
@@skierpage no that they werent exactly the same doesnt mean they weren't very much similar, which they were. Theranos had a myth of technology and a cult of personality to mislead people into investing in something worthless. Wework had a myth of workplace culture and a cult of personality to mislead people into investing in something not quite worthless but which almost no one wanted but they thought, because the cult of personality told them to, they did.
I got to talk with one of the talent team of WeWork in Japan at their office but everything was so off and I couldn’t even get a slight idea of what they are doing, how they are different and what business model they are based on.
@@quinton-ashley yea but you get coffee and other amenities included as well as 24/7 access at most of the co-working spaces. So yea $45 a month seems like a ripoff for being in an open space, but you'd probably spend just as much heck I'd argue even more than $45 if you were constantly going to an overpriced place like Starbucks.
Actually, it's more like an office-subleasing company. Anyone can come and go into a Starbucks, and you can't safely leave your stuff on the tables while you use the washroom. But WeWork's business model isn't novel, and it's very easily replicated. Another company called Regus has been doing it long before WeWork, and there are many many co-working spaces in cities that provide the same service as WeWork, at a competitive price.
@@jonathantan2469 Jesus just rent a room yourself why don't you, I have no idea how it can be cheaper to pay WeWork who, remember, also have to pay a 15 year lease on that building too cuz it doesn't own it, than to just rent a room for yourself and your co-workers??
You can, for quite a long time, as long as the investing world's expectations of it are greater than current net value. It's a transition that most companies go through.
Silicone Valley's been doing it successfully. It's a ponzi scheme ... as long as they can convince new investors they are growing (by conflated numbers on paper) they don't have to turn over profit. Of course, eventually this must fall apart.
Most start ups will have the same fate. They don't make a profit, everybody thinks they'll be like amazon but amazon was a freak of nature, not the general rule.
NOBODY IS PROFITABLE, ITS A HUGE BUBBLE. MOST OF THESE CLOWN STARTUP WILL BURST EVENTUALLY WHEN THE CLOWN REALIZE THEY CANT MAKE ANYMORE MOENY RAISING ANOTHER ROUND, POP GOES THE WEASEL. LIKE NUEMANN THE WEASEL
Danyel Henrique lies ! Amazon also had is share of problems and money trouble from 2000 to 2005... that’s the raison why EBay was able to a big company, cause Amazon did not have a clear direction... thanks I was born before Internet cable amazon eBay WiFi, counter strike and Hallo ...
Keep in mind that softbank's majority of investment is from saudi arabia, that oil money will not stop even if softbank take a 100 billion dollar hit. The only time softbank goes bankrupt is when the saudi monarchy begins to think of it as an embarrassment.
As a Korean, I noticed the Apple appears with a high-fashioned MacBook Pro while Samsung appears with old-fashioned analog tube-type TV, which is quite nice! I love it!!
When a business talks about its special energy and bringing people together, run like hell.
so true! a very ethos argument.
Special energy 🤦
Too much blah, blah, blah is a major red flag.
Make sure they tell you what you WILL make and not what you COULD make.
And somewhere in their marketing line, is the word "Synergy"
It's not a tech company, wework is just a building rental, but people want it to have returns like internet companies that is just not possible.
See, most of the internet companies make money from advertising. Apple (hardware), Amazon (advertising + shopping + hosting etc...). I think Amazon's business model is superb.
Nova El Amazons business model is dominate, destroy, control, then inflate prices. The diaper stranglehold revealed this business ethic devoid of morals. It'll end up as a company that promised much but delivered little of actual value to its customers. Prime delivery is supported by MarketPlace sellers taking shipping hits. That's unsustainable in the long term as Amazon win but sellers lose. The beauty of Amazon was low prices with the sacrifice of instantaneous gratification bringing efficiency through no store chain costs. It's lost sight of its founding principles. Very soon the gloss will wear off of the disrupters and we'll see nothing but profiteering at the expense of their customer base deluded into thinking these vast companies genuinely cared about and protected their customers. It was a wonderful idea but greed took over. What next?
Brynley Talbot Amazon’s main business model is not amazon online shopping business. It’s AWS. Lmao
Brynley Talbot Amazon makes most of their profit from AWS
Soft Bank will turn things around.
"You can't run a business without an adult saying no"
I LOVED that sentence.
In Egypt, we have a proverb : He, who lacks an adult supervisor, must go and buy himself one.
I dont really get the meaning of the above sentence. Could u plz explain it to me?
@@96hoangkieutrinh84 It means you must have an adult who is willing to say no to your enthusiasm and is not eager to run to quick victories but rather slow and sure winnings.
“On the internet, it is easy to find studies that support both sides of an argument. In general, you should never accept the validity of people’s ideas because they have supplied “evidence.” Instead, examine the evidence yourself in the cold light of day, with as much skepticism as you can muster. Your first impulse should always be to find the evidence that disconfirms your most cherished beliefs and those of others. That is true science.”
― Robert Greene, The Laws of Human Nature
that depends on the adult.... Many adults have brought companies down too....
😂👏👏👏
when someone describes their company as a "family," that's your cue to leave
Why
My Magnises famly begs to differ.
Michael Scott does not approve...and if he doesn't, then I don't.
"do you offer health benefits?"
"No but we have a therapy dog that comes in for an hour on Thursdays and yoga balls for chairs"
@@ოChiamariaო You have to prove you are a family not just say it, when it's thrown out like that then yes people beware
I've really liked this simple line to sum things up "WeWork was a real estate company being valued as if it were a tech company". Expecting exponential growth with software isn't too crazy; expecting exponential growth from real estate is.
According to Adam, wework is a Space As A Service (SAAS) Company 😂😂
They didn't own any real estate. All they were was the service, brand and tech
@pcbs5211 that's where I'm confused, I thought they did own real estate and then they would turn that real estate into office spaces and rent those offices out to other people?
Even in software, it's unreasonable to expect exponential growth without a concrete and realistic plan to profit. Most software companies don't see exponential growth either. Thinking every shiny new thing can do that when only a handful of outliers had achieved it in a different market is exactly what led to the hype and wistful thinking that create things like wework.
I can't believe that the Bloomberg piece didn't mention it and I've seen a lot of the comments here don't get it either. The reason WeWork failed is because *they were renters themselves* . They basically didn't own any of the spaces that they were at. It had such a spectacular failure because there's no assets, no buildings, no real estate, nothing. The chart in the video comparing to IWG is completely misleading because if you were to compare the *owned* real estate square footage, WeWork would be zero while IWG does own some of it's buildings.
wow
I got that. Many startups today are about being a middleman with an app, to make life easy for millennials. Find a hotel, find a ride, send news mailers, rent a house, get a date, find a place to work. "We have an app with a catchy name, a charismatic CEO and cult-like culture. It's a revolution!
Dennis: it's even worse. Newman bought a building then leased it to WeWork.
oh, interesting
Ya something like Uber or A B n B , they r called the gig economy .
More content like this Bloomberg. Thoroughly enjoyed this style and topic. Kinda like Vox's "explained" but with business.
OMG yes please!
Personally thought it took a long time to not mention pump and dump. I agree its "kinda like vox"
Agreed!
Same thought here
I'm Curious; What's wrong with Vox ???
.
I'm asking this because Jousua Topolsky was the one who started the "The Verge" and eventually "Vox Media"...was the same guy on whom Mr. Bloomberg entrusted with revamping the Company's Digital side and making it even more accessible to the wider spectrum of audience.
Otherwise; 10yrs ago who would have thought that the company like Bloomberg can also mobilise the not so elite-business croud.
P.S. I'm in no way taking the credit of those who are currently at the helm of this division; it's just that the I believe Topolsky was the one who spearheaded the new outlook of the company.
It's great to have optimists. They get people moving. But in a company, you also need the realists to stop those people from moving too far and fall off a cliff.
And then there are some of us who are in the middle. We're optimistic about our expectations but also concerned about what the numbers tell us so that we can be flexible and plan accordingly.
Hahaha. You just described SOCIALISM and why it always fails! Keep in mind that Socialism is not welfare. Socialims-Communism is about government control of the business.
The guy who says "I thought I'd give you a tour of where wework" and repeating the joke twice kinda sums up the whole company to me. Like people who thought something that was mediocre was really profound
Is this a "tech company" because people are sitting around using laptops? By that measure, perhaps Starbucks is a tech company....
well wework is just a overgrown coffeeshop soooo
@Rajmund Csombordi lol
🤣🤣👍👍
I think it also provided presentation spaces, conference rooms and other infrastructure that companies generally need. But yea, I think it lost sight of core ambition.
Wait.. you're telling me i'm a tech company??
Running a real estate company like a tech one is stupid. Having an app doesn't make it a tech company.
It's insanity!
I remember someone argued that Uber is a tech company but their service is cars instead of rooms and use an app, therefore WeWork is a tech company. How absurd can people be xD
wework rents desks! with wifi and coffee machines! How tech is that?
🙈🙈🙈
Having an app doesn't make you a new Taxi company
My company still uses WeWork, which is incredible through the whole crumble and covid era. Office space is nice, pantry is always interesting. Their biggest problem is that people overvalued them as the next frontier or something.
It was bound to fail. A real estate company being valued as if it was a silicon valley tech start up.
I too saw some youtube videos where this was explained
Didn't fail; Succeeded spectacularly. Neumann's $685 million buyout should be legend among hype-men and hustlers.
The space is overpriced. $600 a month for a work station at a table. You can just go to Starbucks for the price of a latte.
WeFail
@@migkillerphantom links?
Sounds like it is just a office space rental company to me, with lots of bs and exaggeration
Tyson Liu, that is how they dress it... 😅😅😅
@Tyson Liu, that is what it sounds like to me also.
The spectacular rise and fall of WeWork. Anyone could see that when it was starting up it was going to be destroyed by the next recession. It didn't even take that long, such an overvalued startup.
"lots of bs and exaggeration" you mean "genius marketing"?
@@roadtomanitoba9753 not like it takes much to trick boomers into think your idea is new and revolutionary "We have an app" "Oh you mean like that snapchat"
This wasn’t a tech company, it was a renting space to put it simply.
They got way too much cash than they knew what to do with basically.
no, they were in the red even up until recently... getting cash doesn't mean you're profitable. it just means your revenue flow is of a large magnitude. you have to consider costs as well. just having large CF may get you new funding but eventually everyone's LF profitability
pretty much and they SPLURGED it founder's fault
The idea is great actually. And it would be no surprise to see other companies doing the same in the future. The problem with WeWork is bad management and bad execution. Being greedy is usually looked down upon in society. “Lack of oversight” should be looked down upon as well.
@@sakshum4455 It is very unstable as a venture.
The real problem was believing an office rental business is some high-flying software tech startup with low overhead and huge growth potential.
True
They probably could have made it work, but they just seemed to take on too many verticals, too early on
@@Funkotronimus How?? Is there really that high a demand for working space that EITHER current landlords/property giants can't meet OR is missing something that WeWork alone had figured out that can also guarantee WeWork not only the money to cover it's 15 year or so leases on its buildings but also profits??
@@crimsonstrykr what I was referring to was how WeWork had dabbling in random areas that had nothing to do with their primary focus of leasing work spaces.
@@Funkotronimus You didn't answer my question. How does the WeWork business model make any sense?
I remember going to their annual 3 day Summer party in the UK back in 2017. It was extravagant as expected. The first WeWork employee I met was a bit tipsy, said hello and then proceeded with "Our CEO smokes weed...how awesome is that." It was at that point I knew...
I saw his face and heard the first three words out of his mouth. It was at that point I knew ....
This is the last thing the reeling real estate market needs right now, as an Air BnB investor i think due to the similar mode of operation like WeWork, we might soon be run off the market. Essentially why i'm at large for exit measures or where to allocate $1m
after studying the trajectory of great assets like real estate dividend paying stocks and gold, my conclusion is to buy and invest in what you can afford today! working with a financial advisor can certainly help
Just because there are opportunities in the stock market does not mean you should dive in headfirst, if you're unsure if to remain in the housing market i suggest you consult a professional just like i did before making any move, That's how i've been able to stay afloat for almost 5 years with proper portfolio allocation earning about $1m in investment returns
sounds great! could you please suggest this expert you engaged their service? I have lots of difficulty sorting out the right investments on my portfolio
@@Curbalnk How much is WeWork worth?
In the beginning of 2019 it was valued at $47 billion. Two years later after WeWork SPAC IPO (it was the merger with BowX SPAC) the company was valued at $9 billion. As of November 25, the WeWork market cap is $7.3 billion.
Lol.
She goes by ‘’Heather Ann Christensen’ I suggest you look her up. To be honest, I almost didn't buy the idea of letting someone handle growing my finance, but so glad I did.
3:25 WeWork's $10B valuation happened when it had 23,000 customers paying as little as $45/month.
Can investors not do basic math?! That's about $12M/year. Assume the average is 5X higher by magic, that's only $60M/year. Even at this crazy level, revenue of $60M/year would imply a 166X valuation.
Further, if an investor puts money into a startup for some post money valuation, said investor hopes it'll go up 3-10X depending on stage, so they were implicitly saying, "Oh, don't worry. WeWork's gonna grow their revenue 500X to 1660X." Ignoring all this craziness and investing anyway shows how out of touch with reality private startups & investors have become.
The great thing about WeWork is it was a vigorous reminder to investors that growth isn't everything, and that sound underlying economics are King. Hopefully we'll start to see companies that have given their business models more than a glance.
I don't think these investors will survive long in the investment world. Economic Darwinism in action.
@Float Too bad for you the revenue is GIVEN IN THIS VIDEO at 7:23 . It's 1,8 billion. Not 0,06 like you guesstimated.
@@sharefactor still, the valuation of 47B is 26 times 1.8B, and that's assuming the revenue is magically all profit. Assuming things are linear, they need to increase the number of customers from 0.5M to 13M. A googled estimate puts the global coworkers at 3M.
I'm not an economist, real estate or business person, but it seems like crazy numbers.
Float Circuit They invested based on the bigger fool theory ... not on the fundamentals
@@douginorlando6260 Ah, exactly!
Having an app does not make you a tech company. Steak & Shake has an app.
What makes a company a tech company?
Baby Boomers think it does. If you make an app they wonder why you're not making hundreds of thousands of dollars, and don't realize any 12 year old could do it.
@@Wedneswere I'm a software developer by trade. It is completely false to think that any 12 year old can make a functional app for a company. Making an app vs making a fully-featured app with actual functional requirements are two different things. Why do you think we get compensated by LEGIT companies the way we do if "any 12 year old" do it? Meanwhile, the company's that I come across who attempt to hire senior level developer Talent at entry-level rates, are always crappy failing companies. You have no idea what you're talking about.
@@demetriusmiddleton1246 Well, it helps if your main product is computer hardware or software. But really, the whole category of "tech company" has become a meaningless buzzword used to attract investors. Since the 90's everyone has been trying to find the next Apple or Microsoft, and startups know this and exploit this.
@@billvolk4236 you are objecting to a company calling itself a tech company. If you objected that then I'm just asking you simply to Define what a tech company is. Not what helps, or what doesn't make someone to take company , those are easy accusations to throw out there.
But I also understand you were just making a joke. So you probably didn't want to have to think about what you're actually saying
This story is very timely especially given the high speculation in many tech industries. Really goes to show how "slow and steady" really does win the race
It's rental space for people that miss their time at university, where you can hang out with people with similar interests.
And it's a great idea honestly except those college kids without clue also tried to run the company and it failed. University is run by hardened management regents that eeked out the living for hundreds of years, connecting government funding to private doners. Wework couldn't hold up a candle to that
At a university, there's always a critical mass of people to hang out with. No matter what your interests are, there's always a whole bunch of other people who share not just one, but many of your interests. Plus they've got all the time in the world to hang out with you.
At a co-working space, you go there and there's like five people there and nobody has anything in common with you. And they're not there to hang out with you anyway, they're there to get work done.
Worse still, if one of them does share your interests and is working on the exact same thing, they're not your friend, they are your competitor. You're eating into their profits and they're eating into yours.
Best case scenario, you and them combine efforts and start a company together. But that's not the best case scenario _for the co-working space._ It's their worst nightmare. You just use them for a couple months until you've found enough like-minded people to start a business with. And then all of you are out of there all at once.
@@alex_evstyugov Wise points
@@dewinmoonl I mean, how does WeWork differ from all other office spaces? Office area can be rented in every possible variety, there are start-up incubators that resemble WeWork's offices in every inch.
The mystery of WeWork is that this isn't a revolutionary idea and that anyone can rearrange their office space to sth similar in a couple of weeks. When you turn down the marketing you'll see that it's just another real estate company, not a multi-billion tech start-up.
@G P yeah cuz their job is to create jobs for the rat race people
My startup rented office space at WeWork in the early days and I already wondered how the business model could be profitable. WeWork more than often provided lunches, holiday presents, and not to mention all the free beer from the bars available on every floor. Every Friday a big party was thrown with tons of snacks, all the beer kegs being emptied and a lot of happy tenants as a result. People were even dancing on the tables. The vibe was awesome, I've met amazing people and I have really nice memories to an exciting time. Next to that, my company had really affordable office space.
hahahaha he is a philanthropist it turns out
Yeah i think people focus on the fraud and forget how this could have been a solution to the loneliness epidemic
I'm surprised that WeWork didn't just make a bid for IWG with all the cash they were getting at such a lofty valuation. They would have more than doubled their footprint overnight and acquired a profitable business. With so many bankers on the cap table I'm surprised they never thought of it.
Yes, an amazing thought.
Adam Neumann talking about working but really never worked in his life should have been a sign
JanitorIsBack 😆
@Cosmonauteable Yeah he's loaded... He trademarked 'We...' and sold it back to the company at $5.9 million. Totally not sketchy or anything /s
@@donny83 "Neumann will walk away with as much as $US1.2 billion as well as a $US500 million credit line from SoftBank, after it pushed him out"
JanitorIsBack Thats a pretty ignorant thing to say.
Sick burn. Too bad that prick is not in prison for fraud.
"when you don't earn your money you don't respect it" is what I hear people say.
ain't that obvious to see from those elites
spending all limitless from money taken off from the people who really worked their ass off of EARN meager amount of money
Yeah I see it all the time when people don't actually earn the money they don't appreciate the value of a dollar from ex wife to children to people who have inherited money they just waste and blow the hard earned money of other people till it's all gone
Fast money goes fast.
Easy come easy go
@@CrydonPT is what it's called.
"Let's make everything happen faster with more money"
Ah... the classic corporate absurdity. If one woman can carry a child in 9 months, lets get 9 women in here and do it in a month!
Exactly what im saying, slow growth is better than a steriod injection from a large bank. If wework would have slowed down and stayed humble, it might have lasted longer or maybe even grown organically into a success
That happened to a company here in LA called Juice Serviced Here... huge early success, followed by lots of capital raised, followed by opening numerous multi-million dollar locations all over that were also cafes, followed by bottling in plastic and trying to sell in grocery stores, followed by bankruptcy. Everyone loved the product. Organic growth would have built a more stable company.
In my experience this is a common Japanese company philosophy.
In the end everything is done sloppily and ineffectivly because the focus is on spending money
I don't That's how the process of pregnancy works!
Ha, some lessons constantly need to be relearned?? This is perhaps the greatest example I have ever seen?
I don’t exactly understand why they keep calling it a technology startup? It wasn’t.
EXACTLY!!!! The king had no cloths, I can't imagine how sb can throw 4B at a company that it literally just renting office space. There are hundreds of companies like this. There is no innovation here, except for big talk.
Rightly said,
Because Silicon Valley is a bunch of liberal cultists.
I think in total SB invested $7B USD into it, and just loaned it/ themselves $2-3 billion USD more in October 2019.
In comparison to IWG, the 30 year old mature company they are competing against, We shouldn't be valued at even $1B USD.
In fact, SB could have bought IWG twice over with their investment in We.
That's why you know it was all a scam from the get-go.
If they had really wanted to change the world, they would have just purchased IWG and turned it into this magic vision for half the investment.
Instead, the plan was to inflate a new company's valuation and the pawn it off on the retail investors of the world while we are at the peak of the current economic cycle. It wouldn't have been possible with an existing public company with an established, realistic valuation.
Only companies like deepmind are real tech companies. When Amazon and Facebook started they shouldn't really be called tech companies.
Can’t think of anything worse than trying to concentrate with 100 strangers surrounding me 😭
Exactly. Could not agree with you more.
My guess was that was a work place? though I think some buildings was "open" to public to sit and work lmao... I could not do that!! Fuck me, sounds aweful you are right lol. Fuck that.
Sounds like college...
Agreed, my current employer is located within a wework and during the week I find ways to avoid people so that I can concentrate on work.
Don't you love these new all-glass buildings? Who needs privacy? Who needs cubicles? So much better to have everybody watching you and you watching them all day.
So... they're charging people money for what they could easily do at any library.
Thanks for explaining,I wasn't getting it
Pretty much hahaha
@@darkale658 Spot on 😂
entrepreneurship isn't for everybody, so its no wonder you don't get it. Name one public library where people are allowed to congregate in large numbers, laugh, talk out loud, drink coffee? Where employees are offered storage space, play area for their kids, gyms, all things that are definitely existing in typical offices today, and out of all these things, We work was catering for all and more. The video clearly says the idea behind WeWork was nothing short of genius and it was actually solving a major problem, the let down was the poor management !!!
Does a library have Starbucks tho? Huh?? Think about THAT!
Wait, he registered the trademark personally and then sold it back to his company and then board is like, 👌. and no one asked any questions?
Wework board at that time was all of his friends and family lol
This is how our criminal US "leader" works.
@@Lorelcom but Clinton is no more the prez & his crook wife lost.
@@AlphaCentauri24 he was talking about trump of course
They were ALL going to get rich; they willfully hitched their wagon to the tall, dynamic speaking pretty boy’s wagon. Greed corrupts.
"The first mouse to chase the cheese is the one that gets caught in the trap" This is gold.
Or the one that eats the whole cheese (?)
@@lucasbleme1337 One outcome is true 100% of the times, while the other is only a possibility.
@@SadamYT It seems you don't understand. Let's start with the word "outcome". What are the outcomes here? Either the mouse gets caught in the trap or eats all the cheese. The first outcome is always true. A mouse that gets caught is always caught regardless of whether it ate or not the whole cheese.
However, to have eaten all or just part of the cheese is not dependent on getting caught.
See how your argumentation is just flawed?
SadamYT: You’ve made the assumption that those options are mutually exclusive outcomes...
@@tattabox cut your losses kid
Key lesson: there is a difference between raising money and making money.
so true
yeah people seem to miss that
When you CEO has a private 65 million dollar jet, and then Vote himself not to be CEO you know theres a problem
JoeKickass324 Honesty it's a cool level headed trait to vote yourself out. But it's also like calling an Uber from the titanic...
@@RsDefcon What if he wanted to do that so he could cash out early and have less headaches to deal with? If we assume the charlatan route for him, then this makes sense. Avoid any further issues and run off with your gains than waste any more time on it.
CEO wanted out because he got 1.7 billion dollars. Sucker in this plot is Soft Bank and it's share holders. A company like Lockheed Martin, which in place for decades and has made stealth Fighter jets, drone, cyber security, weapons.... With big Governments as its customers is worth 100 billion dollars. how can 'We Work' with few real estate ventures be worth 47 Billion dollars? What was soft bank's CEO smoking?
@Facts Matter - The future for startups and their work spaces. When they start making huge profits (the startups) WeWork will lease out higher priced spaces on properties built to accommodate these companies. And yes it sounds far-fetched but they think they have something that no one has figured out
@@edgecase1047 he thought it was a tech company had he known it was only a real estate company he never would of invested.
My local WeWork was just filled with very young adults that had recieved money from their parents to try and run a start-up. For most of them it seemed to be about being an entrepreneur, not actually growing all their niche webshops.
Charles Ponzi would be proud of these characters.
Charles Ponzi reincarnated
I still can't believe all the 'smart' people who gave their money to a man named "Made Off."
Ponzi?... Amateur!
Not a Ponzi; but, rather a Pyramid. The initial stakeholders will be slightly less screwed when the scheme collapses....
Obama would be proud. None of these people voted for trump. All liberals
Emphasis on the word ,
“Cult like” ;
The kool-Aid wore off,
This company is a sham
take a shower in own office, smoke a joint while walking around the office. dunning kruger his way to the moon.
pavelzaitsev I would work there for sure.
Pyramid scheme
Maybe, but they should have not abused that VC money. When Masayoshi Son was talking about them expanding, they should have thought about making a profit.
That’s not a word, it’s a phrase.
How rich does your Dad have to be so that you can move to New York in your twenties and just start 3 companies?
Yeah, this guys family had to be super rich. Did you see those baby knee pads? How else on earth could you startup something for THAT? Lmfao
You need to have exactly $2.53 per second.
I can’t remember if the Hulu documentary mentioned that. He was a tall pretty boy and could have schmoozed people to invest.
VERY
It's always disgusting when a company tries to frame itself as a "family".
Absolutely. What other words are they going to bend the meanings of?
@@bforty79
ALL THE WORDS!!!
Expropriate the expropriators!!!
It's a friendly way of telling employees to work hard for the company while receiving less in return.
exactly! this company tries to sell their gimmick by forming themself as a "family", all it does is making me cringe. When i work i still call my company a corporate, a business, not a family. A family is something that always has a bond with you since you were little, those that actually cares about you, not like company where they tries to backstab you everytime you make a mistake, those two-faced motherfuckers.
Big Bob FB: “friend”
Adam was a very smart hustler, he played with investor money and got millions to exit.
*billions
Adam has a hustler background
1.3billion man ,not millions
Exactly, i think that was his plan all along, he just took vantagr of all the media app, boom
$7 billion
wework: aesthetics before business
I always get the feeling of throwing up,
when I here a company wants to become my family.
*Sunk cost fallacy:* We're done.
*Softbank:* Hold my 9 Billion.
I worked in a WeWork space in London. Nobody had any friends outsider of their own company. It did not feel like a community at all. That special energy that brought people together must've only existed in the smug minds of the boardroom.
"Exponential growth" in everything except the one thing that mattered...profit.
Yeah, this pretty much. When building an Internet startup there's a sense that it has to grow to global scale right away or else a bigger competitor will come along and swallow them so they blow billions of dollars growing without finding out if there's an actual market for the thing they're growing. In WeWork's case it should have been obvious to all that there wasn't - it's co-working. There's no special sauce there, no special technology, no patents, no IP, no meaningful network effect, nothing stopping anyone from just setting up shop down the street. Just Neumann blowing neo-new-age smoke up everyone's ass.
I disagree - Neumann profited quite a lot, actually, "and that, kids, is what really matters".
amazon ecommerce has still not made profit. lets get realistic. Profit doesnt matter growth does.
@@ankitdixit6389, you're stupid. It's a matter of public record that from 2016-2018, Amazon MADE net profits of $2.3B, $3.0B, and $10.3B. Amazon may be more than just an eCommerce company with AWS now, but they're profitable.
@Tradin War Stories, Liberal Snowflake. Go invest in another WeWork.
So, basically they created something that’s been going on at Starbucks for years...
A bunch of people drinking coffee and “ working “ on laptops surrounded by a bunch of strangers🤔
This is unironically the way all new offices are built. No walls, just glass windows everywhere. You're lucky if you have some privacy in the toilet.
It's been proven that people do worse in open floor plans
I don't like working at Starbucks and these kind of places offer more amenities than a Starbucks does. Many of these also offer 24/7 access can't say the same for Starbucks.
@@jessicacole8404 I found myself being productive in an open floor plan I was doing it yesterday at a uni. library and I'm planning to give one of these places a shot, there's more companies out there than just wework.
@@jessicacole8404 Also if you wanted an individual office those plans are offered at some of these places to. It's not like your only option is the open floor plan.
when a company focuses on coffee mug production, it deserves to go under..
I've got one at home to remind me to never be a mug.
We tried 5 x times to open an office with Regus and they had such poor customer to the point that we spent six months waiting for a contract and the keys. In the end we found other offices. So one of the things Mark Dixon could do as CEO is actually try to speak and listen to his potential customers.
WeWork should be renamed to WeSpendALot, looks like Neumann thinks about spending rather than earning.
Thanks Bloomberg I learned a lot today.
We Scam?
lol watching this in 2020. COVID was probably the final nail in the coffin for wework
It's actually potentially going to help them... companies want 'flex' office space
You look creepy, especially with your short off bruv
Adam Neumann's WeWork failed long before Covid. Rebekah Neumann was the true downfall. Got a little bit of money to build the company, little bit of hype, and suddenly felt like they were going to take over the whole world and turn it into a new age spiritual utopia. Complete delusions of grandeur. Highly recommend the doc that just came out on Hulu, shows just how batshit they both were.
Adam was the nail in it...
lol.
I like how a woman in this video called it a “cult.” No wonder pyramid schemes love these places.
@Darius Kang The Japanese manufacturers I worked for that act EXACTLY like this. Sometimes the branch manager or national officer would drop in (with his yes men), inspect the workforce (beyond lunch breaks), and "encourage" applause and attention to his inspirationals during required briefings. I looked around the room, seeing almost everyone NOT BUYING IT (there's always one stooge clapping like an idiot). It was glorious.
Liberalism is a cult, yes.
The Hulu documentary goes into that in detail. Some amazing stories.
"Oh man, I lost 3bn... better cash out and vote myself out as CEO so someone else can handle this pile of turds"
I find how we work managed to raise so much money given the lack of lack of originality in the concept of the business business centres and incubator units have existed for years
I had a friend who worked for We Work for several years, until this past spring. She hated it and talked about the nonsense that would occur during their company outings and the rampant sexual harrassment that took place. She was so burned out and is so relieved she got out when she did.
SEVERAL years?? "Got out when she did"?? Uhhh.....
This is another reason why toxic companies like this get as far as they do, people not willing to stand up & say something right away...or just simply leave. People that work at some amazing game-changing/disruptor unicorn that put up with this kind of behavior & rampant greed & fraud because they think it's their only option boggle my mind. Apparently Kool-Aid is a helluva perk...
Do u mean worked as they rented an office at one of those Wework buildings or actually worked for the WeWork company itself?
@billblaski9523 the company itself. She was one of their early hires and leveraged it to work for one of the FAANG
The video goes over 13 minutes without once saying the word 'fraud'.
Finn Krogstad because it’s not
@@Sdjjkshdjdjs banksters reporting on banksters yolked by laws written by and passed by/for banksters. Indeed only by the letter of this law is it not.
@@soupforare it's just overvalued the business itself is not fraudulent
Finn Krogstad I agree. There is another example of this which is Theranos and Elizabeth Holmes.
@@mishael7863 "Renting" your logo to the company at 5.9mil is a gray areas especially if the investors didnt sign off - but who knows we had to see what the SPA/SHA looked like. Soft Bank probably didnt even want anymore scandal either at risk of losing even more - just let him walk with that money, move forward.
I am a digital nomad working in Bangkok and I have not repeatedly sat in the co-working space since 2020, because of COVID-19. Today's workplace is a cafe, hotel, restaurant, or anywhere else that has WiFi. Where am I working today? Mangrove, the riverfront cafe and restaurant in Amphawa, Samutsongkram.
"They felt drained afterwards..." that's what narcissism does once it's done with it's victims then happily moves on with the goods.
.....moves on to the next victim
Looks to me like Adam Neumann got exactly what he wanted from all this lol.
no, I think he still got out with 1 billion $.
@@mhjunky4278 thats plenty more than he started with mate
@@OfficialYeat How much did he started 5 years-ish ago?
There could a chance that his net worth plummeted slightly cause of WeWork.
That’s what I’ve been saying all along.
He’s still laughing every time he goes to the Bank you fools...That’s American Business for you....fire them all and take them money and run!!
This is a brilliantly made documentary about WeWork’s rise and fall - and what it tells about the tech & startup world.
TBH the way wework advertises their space looks more like it’s a university study area not a place of work.
Their target costumers are aspiring entrepreneurs coming out of college/uni so it kinda makes sence..
@depressed cockroach Thats the thing! Their business model is nonsense!
So basically it was a Starbucks that people paid rental space for 🤔
OpenLinz You haven’t worked from a coworking space before have you?
We have unlimited beer on the tap too. At least where I go at least. I would say more of a Starbucks the you need to pay to enter, but you always have a spot to sit at. Coffee is okay. People are generally alright. I work in healthcare, not there to make a start up, but like the atmosphere. and I get my work done, study in peace, don't have deal with homeless people being loud, and it helps me stay on track with what I need to do.
@@michaelambrose No, I'm a grown up and can happily work from a library or starbucks and not pay 1/3rd of what it costs to rent an apartment
MrEeeaddict Grown ups don’t work from “Starbucks and library’s” 😂😂😂
@@michaelambrose
Before WeWorks came along that's exactly what Grown ups were doing; working from Starbucks and libraries.
You might want to look up history and see all the scientists who spent hours upon hours working in libraries for research.
Or we could look at entrepreneurs who spent hours in Starbucks going over their plans for a larger enterprise.
Stop acting like this is some new invention that is beyond understanding.
I've had meetings in coworking spaces before because my agent had one.
It was nothing special
I guess WeWork might be appealing for extroverts, but introverts? Hell no
Watched the whole thing and still no clue what WeWork is or does.
They lease large commercial real estate then sublet it at various tiers to others on a casual or subscription basis while providing amenities.
People that can't afford to have an office pay a subscription and they get time shared office space.
@@David-sq2en It's not always simply a question of whether they can afford it. Not everyone needs a full-time office.
@@TonyRule If you put it that way then... Nobody needs a full-time office.
@@David-sq2en Thanx for the reply.
Everyone talks about the ceo but no one talks about SoftBank’s wrong vision of the company.
The bigger picture is even scarier... how soft bank has this huge ammount of money to bet in this bs idea?
All the cocaine changes perspective
SoftBank is run by people with money to burn. Their philosophy is to throw money at anybody who asks. They want to lower the barrier to entry for small companies.
@@lostinthelookingglas central banks trying to estimulate the economy and failing miserably...
@@PedroSilva-re6ck When you have that amount of money, you bet on 9 bs ideas to find one that will give you a 1000% return and keep your shareholders pockets stuffed. You then create a monopoly with that company to keep the cash streaming in while you screw your customers. If you're the Wework guy, you're skimming off enough of that pile in salary to set you up for life before the company goes tits up.
Watched 13.5mins video, with no explanation on WHY this happened in first place, just like a mistery movie!
Wow this was super well done.
Hey Johnny, could you please do a video on the crash of the Adani group of India? I mean they lost more than a $100 billion due to the release of just one report.
The airbnb of offices... when you could just go to your local library to work.
Or Starbucks
José Luis WeWork user here! I work in a 30 person branch of a much larger company and we rent an entire room at the WeWork. It may be pricy for just one person to use a WeWork (Versus working somewhere else like a library or coffee shop as you pointed out) but it’s way cheaper for my company to put our small remote office in a WeWork versus renting an entire office. One of the benefits of WeWork this video didn’t highlight at all.
Marisa Weiner Why not just all work remotely and meet virtually via Skye?
@@JCizzleSoCal Some clients want to meet you in person. If you are a sole proprietor or small company, having something like WeWork makes it possible to meet your clients in larger cities like NYC. You would never be able to rent office space to meet the occasional client where they want to meet otherwise. I had like one meeting per year, in NYC or Philly.
No VPN at the library, who are you allowing access to your clients and confidential information to.
I'd love a video where Ellen or someone from Bloomberg explained in-depth the appropriate controls a business should have before an IPO, with more examples.
They sold it... to investors. The investors just couldn’t hand the hot potato to some other over-enthusiastic investors!
Nice analogy
Best comment.
Pump and Dump. This is the type of thing that you'd see in the OTC stock market.
@@Evocatorum except this is not a publicly traded company, so there are rules limiting who can invest to "sophisticated" investors and funds. To Softbank's credit/insanity, it didn't dump, instead it pumped $9.5 bn *more* into WeWork to keep it afloat only to see the valuation drop to $8 bn within months... ouch!! "We believe in this company... wait where is everyone else?"
"ousting its rockstart CEO"
brabing him with over a billion dollars so he'd go away... Adam Newmann is truly a masterful conman
...And perfect example of crony capitalism
I’d vote against myself 100 times over for that sort of cashhhhh
Well he is from Israel after all.
Imagine getting paid a billion dollars for a turd like WeWork.
@@shubhamtripathi2683 it's not crony capitalism where people conspire in economic activity to mutual benefit (e.g. recommending each other for fat contracts from government officials who invest in those companies). Investors bought into WeWork's hype and very publicly watched their investments tank. At most maybe SoftBank pressured other companies in its portfolio to use WeWork spaces.
I interviewed for this company and wanted to work there so badly. They rejected me and now I am happy they did.
I worked at a small company using a WeWork space for years and it was awesome! Great office amenities provided by WeWork for companies who typically wouldn't go out of their way to provide them.
Been in business since 2010 still call themselves a start up company.
Protip: if you go interview for a job and the company calls itself a startup even though it's 5 years old and has 2000 employees just walk out the door and don't look back
@@GlutesEnjoyercan you explain why?
Technically it is not incorrect, many companies that have been in business for less than 10yrs call themselves startups. There is no definitive definition for it
Yes, like Uber
@@EricZhouWu Startups have low salaries, long work-hours, shitty managers (early in, not promoted due to skills) and can collapse any day due to trying to hit a super-growth phase while begging for lot of investor-money.
I don’t think it’s a particularly bad idea. It was just executed by a swindler who made it look more exciting than it was
youre half right, that swindler did make it exciting and it really was exciting but that excitement spent all of that money haha, theyre coming back now bit by bit, suddenly everyone is coming to WeWork when its not smart to take an office lease for 10+ years in fear of another pandemic or war
fund scientists not charlatans
I agree, although there has been a lot of Science Philanthropy from big names like Stephen Schwarzman, Ted Stanley, Paul Allen and so on. We need to fund more of the younger scientist so they can afford to stay in the field. Most Scientist don't get their first federal grant until there 40's.
@hytwoxy yup
Fund whomever you think is competent enough to give you a roi.
@American Pride how
Saul Savelis Amen brother
WeWork - Theranos' cousin, Enron's grandchild.
I was just thinking about it when I heard about this company. It's obviously Enron over fake inflated value company all over again. The former CEO and most of the people speaking in this video should be arrested for fraud.
I thought about both companies in this video. The other thing that concerns me is how many other companies are in the same boat but are hanging on with investor money.
I think that's a bit of an exaggeration honestly. Theranos never delivered the product they promised and lied about it when they realised they never would. Wework on the other hand has thousands of tenants who are perfectly happy with their office space. My company has its main office in a Wework place and we've successfully grown our business while enjoying the complimentary beer. So at least Wework has delivered the product they promised and as a customer that's all that matters to me, I couldn't care less what happens on the investor side of it. The day Wework folds, my company will just move on. If I had been a customer of Theranos, I wouldn't be quite as happy.
Not quite theranos, but definitely a bit of Enron - no board oversight, buying crazy acquisitions to boost stock price, hiding losses from investors, trying to convince people the company is a "tech startup" even though it's all asset based and has huge overheads... List goes on.
Bloomberg tries to destroy the idea of venture capital. They want to see money flowing only through investment funds of theirs buddies into big corporates of yet another buddies.
FUD stories.
This is such a great analogy for our generation
Who are those people being interviewed in this feature? There are no captions.
The mother and girlfriend of the producer.
@@Ferrante69 lol 😆😆
Gerardo Uribe thanks for making my day!
It says Ellen Huet.
Bloomberg reporters
"no adults in the room saying no"
In my area , I saw a wework venue open . 3 months later it closed down, now it's open as some sort of charity shop.
A startup I refused the offer from last year, cos they wanted to work in “coworking” space. No. Sorry. I need a desk and preferably a cabin. I need to think. Work isn’t daytime party. Work is a creative process, that which fires the engines of the company. If i needed to socialise, I’d go to a bar.
avoid the agile culture.
puneetarorax I KNOW THATS RIGHT
You said it. I'm the same way.
lol
Then you should sit at home.....and work , probably WFH is a better option for people like you !
As an introvert, I just cant imagine working/studying in such an “interactive” environment.
Camille S switch to ambivert mode
same
I remember someone at my company said "Wouldn't it be cool if there was a company run by extroverts for extroverts?". I face palmed so hard I accidently slapped myself.
Me _thinking one morning for no reason to start a business_
*SoftBank : Hey take our money...*
Now your company is worth $2 billion dolars.
Now the company is worth 8 billion dolars
And now the company is worth 34 billion dollars and is one among the top 5 startups in the world
@@shivramakrishnanv6854 *Plot Twist : I'm Elizabeth Holmes*
It's amazing to see people who call themselves financial experts, unable to see garbage financials.
Women in finance..yeah !!
No kidding eh. When I learned what we work was i was baffled. Everyone hates open concept offices, there's no way this meant anything.
People yelled back hard and loud to shut up lol i guess they really wanted the company to take advantage of them.
@@Avenus112 It's an echo chamber in silicon valley. The dumbest ideas are getting billions in funding because there is a slight chance it might maybe.. possibly pay off. Investors are all gamblers and silicone valley is their Las Vegas.
Also, open office spaces are the least productive. It's a goofy way of getting workers to be productive by making them feel like they are not working... well if you feel like you're not working, usually you don't work.
They saw it and they were in it. Bet you they got the first dibs of the IPOs and then they cashed out.
Are they being punished for failure? The outcome is unlikely to be unexpected. Not sure if you noticed, but even if investment banks go down, they get bailed out. Then they supposedly pay back the money, but by financial wizardry they kind of don't. Tax payer picks up the bill, banks profit either way. In other words, it is always someone else's money they loose. Rinse and repeat, until the general public picks up some basic financial education, and develops a basic bs detector for the stories told in mainstream news. I am not holding my breath.
whenever i hear "The fundamentals" remain strong, you know things are f'd up to the nth degree. remember when they said that in 2008, right before the great recession started.
"As long as the foundations remain strong .... " Korg
*Asgard blows up in the background*
How quickly everyone seems to have forgotten about Theranos
Right? Same strategy and mythology.
The White Unicorn is on the verge of swan diving into oblivion yet again...
@@Avenus112 no they're not at all the same, except both are startups. WeWork has a business model as shown by the profits of competitor Regus/ IWG. Theranos had a breakthrough tech that didn't work.
@@skierpage no that they werent exactly the same doesnt mean they weren't very much similar, which they were.
Theranos had a myth of technology and a cult of personality to mislead people into investing in something worthless.
Wework had a myth of workplace culture and a cult of personality to mislead people into investing in something not quite worthless but which almost no one wanted but they thought, because the cult of personality told them to, they did.
Tip, there's not this huge demand for co-working spaces.
I'm available to consult.
I got to talk with one of the talent team of WeWork in Japan at their office but everything was so off and I couldn’t even get a slight idea of what they are doing, how they are different and what business model they are based on.
So it's like a Starbucks location but bigger.
and they have to pay $45 a month because late stage capitalism
And with more amenities and more convenience than a Starbucks cafe.
@@quinton-ashley yea but you get coffee and other amenities included as well as 24/7 access at most of the co-working spaces. So yea $45 a month seems like a ripoff for being in an open space, but you'd probably spend just as much heck I'd argue even more than $45 if you were constantly going to an overpriced place like Starbucks.
Actually, it's more like an office-subleasing company. Anyone can come and go into a Starbucks, and you can't safely leave your stuff on the tables while you use the washroom. But WeWork's business model isn't novel, and it's very easily replicated. Another company called Regus has been doing it long before WeWork, and there are many many co-working spaces in cities that provide the same service as WeWork, at a competitive price.
@@jonathantan2469 Jesus just rent a room yourself why don't you, I have no idea how it can be cheaper to pay WeWork who, remember, also have to pay a 15 year lease on that building too cuz it doesn't own it, than to just rent a room for yourself and your co-workers??
I went in for a job interview at a WeWork in Chicago. It's a great concept but flawed in nature. Mostly due to bad leadership.
I can't imagine not getting a job at a business that eventually failed
Bad leadership is why most companies fail: public and private
Very sad
I own a co-working space putting all my savings into it and it's one of the worst decisions I've taken. The pandemic hit us badly.
did you open it before the pandemic?
the short version: can't run a business with no profits 😬
You can, for quite a long time, as long as the investing world's expectations of it are greater than current net value. It's a transition that most companies go through.
unless it is a state owned company
Shorter versions: scams are scams
Amazon enters the chat
Silicone Valley's been doing it successfully. It's a ponzi scheme ... as long as they can convince new investors they are growing (by conflated numbers on paper) they don't have to turn over profit. Of course, eventually this must fall apart.
Most start ups will have the same fate. They don't make a profit, everybody thinks they'll be like amazon but amazon was a freak of nature, not the general rule.
NOBODY IS PROFITABLE, ITS A HUGE BUBBLE. MOST OF THESE CLOWN STARTUP WILL BURST EVENTUALLY WHEN THE CLOWN REALIZE THEY CANT MAKE ANYMORE MOENY RAISING ANOTHER ROUND, POP GOES THE WEASEL. LIKE NUEMANN THE WEASEL
“Fate”??? WeWork didn’t die bro. It just got bitched slapped back to a spot in reality. They’re still a giant.
Amazon doesn't make money buddy.....
Danyel Henrique lies ! Amazon also had is share of problems and money trouble from 2000 to 2005... that’s the raison why EBay was able to a big company, cause Amazon did not have a clear direction... thanks I was born before Internet cable amazon eBay WiFi, counter strike and Hallo ...
@@johndonaldson3619 yes it does lol. They are reporting profits, 3 billion in 2017 and 10.1 billion in 2018. Check your facts before you comment lies.
Who's here after We work's bankruptcy..😅
WeWork: "Anybody have money to throw away?"
SoftBank: Yes.
Right. Softbank should have been more careful. They should have at least appointed a representative to look after how their money is spent by weWork.
Keep in mind that softbank's majority of investment is from saudi arabia, that oil money will not stop even if softbank take a 100 billion dollar hit. The only time softbank goes bankrupt is when the saudi monarchy begins to think of it as an embarrassment.
Softbank: "Yeah we still got some money to burn after that whole Uber debacle.."
I never thought them as a tech company once. The whole thing is just a marketing scam.
Chrissel L 🙌🏽
As a Korean, I noticed the Apple appears with a high-fashioned MacBook Pro while Samsung appears with old-fashioned analog tube-type TV, which is quite nice! I love it!!
WeWork: We actually Don't Work!
“We like to say, We feel it or We don’t”
Well, “”we”” feel like your company is being propped up with unicorn farts... we out
Great name for my new startup.. WEOUT !! I OWN the rights.. but will sell it to you for 5 mil$..