People showed up with this core competency called … math … and said “No!” to this.
The context of this is the implosion of the IPO for WeWork over the last two weeks, and as of yesterday, the push out of its CEO and founder.
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The details are that WeWork is a company that rents office space to startups without facilities. The founder also had a lot of pie-in-the-sky ideas about how WeWork was going to change the universe. An IPO means that a startup is fully cooked and ready to be presented to the public as a potential investment. It’s also a way for the insiders to turn all their sweat equity into liquidity they can maybe cash out. A lot of potential investors bought into the sales pitch that this one was hugely valuable. And then those emotional investors drew the thinking investors who pointed out that this is just a real estate firm with some frills, they weren’t making money on the real estate part, and the frills were merely … amusing.
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