With information that the We Firm (previously referred to as WeWork) has formally filed to go public confidentially with the SEC in the present day, there’s a giant query on everybody’s thoughts: is that this the subsequent huge startup win or a home of playing cards ready to be toppled by the glare of the general public markets?
No firm I observe has as a lot polarized opinion because the We Firm. And whereas the corporate should reveal at the least a few of its hand in its official S-1, my guess is that the polarization across the firm is not going to be alleviated till effectively after it goes public, if ever.
The problem with understanding its enterprise is how a lot the small print of every of its leases, actual property markets, and tenants matter to its backside line. We already know the highest line numbers: the corporate had income of $1.eight billion in 2018, and a internet lack of $1.9 billion that yr. That led to the acquired opinion that the corporate has a very weak enterprise. As Crunchbase Information editor Alex Wilhelm put it: