[Soundest]

Many months ago I listened to a podcast about WeWork that summarised the problem as: renting office space is a very traditional business. It's demonstrably true that the cost of these rental spaces is cyclical with the business cycle, and companies like WeWork are basically taking on long term leases at the height of the boom. These leases are 10-15 years, and realistically the value of those spaces are going to dip at some point over that time, at which point the business goes bankrupt because it's massively leveraged.

Everything I've seen about WeWork indicates that this is exactly right -they've got a very traditional, poor business strategy, alongside full on insanity scale silicon valley optimism. Does anyone know why WeWork is valued at close to 10x competitor Regus?