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by joeblau 2440 days ago
Is there any way that the numbers could work out? Let’s say SoftBank is able to trim the company to the bare bones; Does the We Company still make money at high gross margins? I wonder if it makes more sense to cut losses, as opposed to pumping more money in? I guess that’s why they pay SoftBank the big bucks…
2 comments

Hard to know what is fact, but the info that has come out (including the S-1) indicate that a majority of their properties are losing money.

If that is the case, then this cannot end well no matter how they trim operations

The majority of their properties are very new so losing money is expected. If older properties are making money and new properties will eventually turn into older properties then they are, potentially, fine.
The numbers can definitely work out. Properties are margin positive on 50-80% occupancy. We Work dominates the flexible office leasing category in many huge important markets around the world.