They rent buildings long term for low prices and then lease them back out in small pieces at higher prices. If they can keep the buildings full enough, they could make a lot of money!
Right now most of their buildings are still pretty new, so they are not full enough, but that should change over time.
Yes Regus does this and is profitable - given Regus is valued at $3 bil It might make sense to buy them instead of pumping another $3 bil into WeWork that doesn't look like it will ever make a profit.
Yes but sometimes even for companies in their position they say enough is enough to the losses and choose to let them go into administration instead. I'd say its unlikely SoftBank will choose this but it is an option for them.
They can kinda do something half way in that direction just by waiting. The lower WeWork's cash on hand gets, the harder of a position Neumann is in. Of course, it's not clear if it's a credible bluff since Softbank isn't in a great position either.
Regus does something similar, but slightly different.
Regus is geared towards small businesses anticipating a long-term home. WeWork is geared towards individuals and companies that don't know if they'll be around in one year.
As a freelancer, Regus is too large of a commitment while WeWork is more manageable.
Working out of a Spaces office - I'd have to disagree. Services not provided include microwaves, coffee, reliable Wifi, working Ethernet ports, comfortable office temperature, remotely competent staff, reliablly being able to unlock your office door, an ability not to throw away personal belongings in the kitchen, breakout areas (they're turning > half of every kitchen into another office and they're already tiny compared to WeWork's), clean toilets, clean kitchens, any events, any sort of help with letting guests into the building.
WeWork buidings are filled with clients that are brought in by other SoftBank money. It's human-centipede equivalent of VC-funds circling back around to each other, in hopes that suckers will invest in it and then they pull out.
The most obvious problem with WeWork is that the company has been run by someone who is some combination of corrupt and insane. Changing that element is an obvious solution to at least try.
WeWork dominates the flexible office leasing business any many large and important markets around the world. It would be difficult and perhaps impossible to replicate what WeWork has achieved. And since it can make money at 50-80% occupancy rates, there's a massive profit opportunity.
It's been done for a century before and has 2 major profitable companies with sound and proven financials.
WeWork is absolutely nothing new, the industry already knows what the optimal numbers need to be and WeWork is nowhere near them to ever be a profitable business in its current form.
Right now most of their buildings are still pretty new, so they are not full enough, but that should change over time.