Before the pandemic, WeWork (WE) was valued at $47 billion, quite the high for a company that just filed for Chapter 11 bankruptcy on Monday. According to Bloomberg, the company’s first appearance in bankruptcy court will be on Wednesday, to settle the $4 billion debt it can’t afford to pay back.
The George Washington University School of Business Professor Christopher Kayes joins Yahoo Finance to discuss WeWork’s fall from grace as a startup darling, how it got to this point, and whether or not the original valuation was overhyped.
“This is a company that never really had a business model that met the overhyped expectations that were placed on it. I think today we are going to see, and in the next couple of years, we will say ‘does this business model really work?'” Kayes asks. “The other question really around this is how big is the market for people that want flexible workspace? I think there is going to be a limit to the number of people working that are going to be working in this kind of environment.”
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Who da hell invested into a company, where the only thing the CEO knows, is throw a party.
AirBnB of Office Spaces?… majority of a remote worker’s benefit comes from working from home and saving money. This was a bad idea from the start!
Success has many fathers, failure is an orphan.
*”wework” = THERANOS EDISON.*
The criminal investigation should be conducted on the evaluation!