speedracer's comments

I wonder if Softbank has released all of it's funds to WeWork. they usually release them in tranches based on milestone achievements. In this case doing an IPO was likely one. Which is probably why they were pushing against doing an IPO, potentially saving some of the remaining capital. Not sure.

They don't have early termination provisions!?? That better have come at a steep discount for WeWork to take such a risk.

Extremely levered indeed. I imagine that they will reduce the lease terms from the current average of 15 years when occupancy rates tighten. At that point they have a different problem, their margin difference between their lease payments and their lease revenue (minus the perks, furnishing office spaces) will come down. All said and done, had they been valued at say ~$10B, this would have been still a high risk play but at least the multiple is not so exorbitant. I don't get what Masa saw in this to value them at $47B, there must be something. Isn't he super smart???