Great interview with @ProfessorGalloway in the New Yorker on #WeWork's « triage »
« This is a distressed asset in free fall that is inarguably worth less than zero. Because all we have here is an entity burning $700 million a quarter. »
« The market is going to have to decide how thin the lines are between vision, bullshit, and fraud. »
« Adam Neumann fired? He was liberated. This guy just played this perfectly. Could you imagine what his life would be like right now? If he was still CEO? Showing up every day to an office where he had sold $750 million and everybody else was trying to figure out how they were going to pay the rent on the new apartment they had moved into because they thought they had $7 million in We stock? »
« Adam Neumann came in, smoked his own supply, and walked out with three-quarters of a billion dollars about the time that people in hazmat suits showed up. …So he and his family will literally have to go into hiding. There will be threats against his life. There's going to be so much anger here.»
What about « JPMorgan and Goldman Sachs? These guys were about to collect $130 million in fees and then prop up some equity analysts to tell their private-wealth managers in the marketplace that this thing was $40 billion to $60 billion. And according to Goldman, it was worth $60 billion to $90 billion! What does that say about them? »
« What happens to the New York and Chicago commercial-real-estate markets where WeWork was the biggest and the second-biggest tenants? »
« The real toll is that there's somewhere between 5,000 and 15,000 WeWork employees who took a job and a big part of their compensation — the reason they took these jobs was because of equity value. And it's impossible not to count your money 30 days out from an IPO…
« We're probably talking about several thousand people who were going to be millionaires. Now most of them are probably thinking that in the next 30 days there's a one-in-two chance I don't have health insurance. »
« Adam Neumann fired? My God, he got on the last helicopter out of Saigon. »
Read the whole article in the New Yorker Magazine:
'At What Point Does Malfeasance Become Fraud?': NYU Biz-School Professor Scott Galloway on WeWork
-- The MasterFeeds
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