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Will WeWork Succeed in Launching Its IPO?

September 25, 2019 21:10 PM UTC
- Updated January 02, 2020 15:05 PM UTC

Or does it have too much to overcome?

Transcript
[ MUSIC ] Welcome to fortune tech debate where we discuss the issues of the day in two minutes. Today we are talking about we work and its efforts to IP. David, do you think that they will finally get this off the ground. I think they've really improved their position. They got Adam Newman out the door who's a little bit of a loose cannon. They've got two new CEOs now, and hopefully they'll get their act together. I do think that there are enough adults in the room at this point to say, clearly, there's an issue. Let's replace him, and get everything in line. They've also got a $ 6 billion credit line that is contingent on them IPOing by the end of the year. So yes, I think the IPO will go through. But in terms of a company being successful, they have too many red flags and I just don't see it happening. Yeah, I mean, certainly, they are less of a company that Adam Neumann dreamed of them being. They're gonna, probably, be at a lower evaluation, we've already heard that. But they do have an interesting business if you shrink it down. They're catering to startups. They're providing workspaces for flexible companies around the world. You at least have a business there. Yeah, that's also the thing. They don't really know how to define their business. Adam Newman especially was very big on purporting them to be a tech company. Let's face it, they are a real estate company. We've heard that line being towed before by other companies like Uber. And the fact that they don't have a clear vision, especially with Adam Newman gone, who was really the visionary behind the company. I'm not that confident that they're gonna be able to pull through they actually listed. Did his possible departure as a risk factor and now he's gone before the ipo was even out I would say I adam newman was the one who lacked vision he had too much vision he wanted it to be an education company you want it to be a community company it's a real estate company they rent offices and now we have people who are going to actually focus on that Adams wife is gone now as well who was running the education wing of the week company. So it's going to be streamlined it's gonna be smaller the volume valuation will probably less than they were hoping for. We already know that And it'll happen but what happens after that? We'll see. That's the thing. I think like I said they'll make it to IPL but after that, I think that they don't have a very lengthy future. But that's all the time we have for today. Come to fortune. com for more tech debate.