[hn_throwaway_99]

Furthermore, according to https://craft.co/wework/funding-rounds, WeWork has already received $12 billion plus in equity investments (not counting debt raises). Softbank alone has already put in $9.4 billion in equity + $1 billion in debt.

So it looks like they've already destroyed $4 billion+ in value. I'm curious how the more financially astute than I see this as anything besides throwing good money after bad?

[ian0]

The underlying value of a company can diverge from its valuation. While obviously this happened when they pitched a $50bn valuation, it could also be happening here. IE Softbank thinks the value is way higher than 8Bn but forced a low valuation as to buy up as much stock as possible.

[JohnJamesRambo]

It seems like they haven’t even read the Wikipedia for Sunk Cost Fallacy.

In case any SoftBank homies are reading this, here you go. You are investing in the Concorde.

https://en.wikipedia.org/wiki/Sunk_cost

[dodobirdlord]

I don't think that's really relevant here. The $11B is sunk, the question is whether buying control of WeWork is worth $5B.