(CNN Business) – When WeWork plans its successful initial public offering collapsed in 2019, the company became an example on the venture capital excesses and startup culture in the post-2008 era.
“What happened to WeWork is not just a failure of this particular group of individuals,” wrote Shira Ovide, a columnist for The New York Times who was on Bloomberg at that moment. “It’s a by-product of the last decade of easy money that has seen investors pouring money into assets that promise to grow rapidly. These have been times of utmost stupidity and they won’t last forever.”
Now, after two tumultuous years that included changes in company leadership and a historic pandemic, WeWork is ready to try again.
What happens: The flexible office space provider’s shares began trading on the New York Stock Exchange on Thursday under the ticker symbol “WE.”
But it’s a different deal, a different world, and a very different WeWork.
Before– Initially, WeWork sought the public offering for sale (IPO). The bankers were expected to give the company a spectacular valuation. At its peak, private investors believed WeWork was worth $ 47 billion.
Now– Thursday’s listing follows a merger with BowX Acquisition Corp., a special purpose acquisition company, or SPAC. The deal values WeWork at roughly $ 9 billion.
Before– When WeWork released its 2019 IPO prospectus, questions quickly arose about how fast it was burning cash. The company shared that while its business was growing rapidly, it had lost a staggering $ 1.9 billion in 2018 and $ 904 million in the first six months of 2019.
WeWork’s corporate governance also came under the microscope after it was revealed that co-founder and then CEO Adam Neumann had amassed enormous voting power, giving him extensive control over the direction of the company.
Now– Under Sandeep Mathrani, the real estate veteran who took over as CEO in early 2020, WeWork cut costs and overhauled its leasing portfolio.
However, the company continues to lose money. Following the deal with SPAC, which will raise $ 1.3 billion, Neumann will have a voting power of around 11%.
Columbia Business School professor Len Sherman said taking the SPAC route allows WeWork to avoid the scrutiny it has attracted in the past.
“The advantage of a SPAC offering is that it allows WeWork the ability to make optimistic and forward-looking growth projections that would not be allowed under traditional regulatory IPO rules,” he told me.
Before: What is covid-19?
Now: The pandemic has dramatically changed the market for office space as more people work from home. “We believe that increased work from home reduces demand for offices by about 15%,” Daniel Ismail, principal analyst for the Green Street office team, told me. “That is a true paradigm shift.”
However, it is not all bad news for WeWork. Ismail believes companies will want more flexible arrangements as workers return, and will favor signing one- or two-year contracts with a company like WeWork rather than securing longer eight to 10-year leases.
He predicts that the flexible office market, which currently represents only 2% of total office inventory in the United States, could reach 10% by the end of the decade.
Having said that: Shares in IWG, which Ismail says is WeWork’s top listed competitor, are down 13% this year as uncertainties persist.
One more thing: Neumann is infamous now (he will be portrayed by actor Jared Leto in an upcoming Apple TV + series). But that doesn’t stop you from celebrating WeWork’s delayed debut. The Financial Times reports that Neumann will host a party in New York on Thursday with the first employees at the Standard Hotel.
What problems in the supply chain? Tesla records a record quarter
Automakers around the world are struggling as problems securing crucial parts affect production. Tesla is not exempt, but it is proving tough.
The last: the company reported another record quarter after US markets closed on Wednesday. Between July and September, it made $ 1.6 billion in profit, an increase of 389% over the same period last year.
Revenue was up 57% compared to 2020, even as the company made less by selling regulatory credits to other automakers, which use them to meet environmental standards and avoid large fines.
Analysts have warned that Tesla should be less reliant on that line of business, which is lucrative but is expected to decline as competitors ramp up EV production.
It’s still hardThe company warned that it is experiencing difficulties obtaining computer chips and other materials, even if it was able to overcome those problems in the third quarter.
Tesla previously disclosed its record sales for the period, up 20% from the previous three months and 73% from the previous year.
“Due to parts shortages and logistical variability, we have not been able to operate our factories at full capacity,” CFO Zachary Kirkhorn told analysts. “It is important to note that while we have roughly doubled deliveries so far this year, this has been exceptionally difficult to achieve.”
Kirkhorn said customers are waiting longer for vehicles and delays are increasing.
“The only practical way to address this in the immediate term is to do everything possible to build more cars on our existing production lines,” he said.
Investor perspective: Shares fell more than 1% in premarket trading.
Pinterest shares soar with PayPal takeover talk
Could PayPal buy Pinterest? Investors in the social media company are certainly looking forward to it.
Pinterest shares soared nearly 13% on Wednesday after media outlets reported that the online payments provider could buy the website. PayPal shares fell 5%.
The deal could be valued at $ 45 billion, making it the biggest tech deal of the year, Bloomberg reported, citing people with knowledge of the matter. Reuters and The Wall Street Journal have also reported PayPal’s interest, citing sources.
The thought: PayPal takes steps to become a “super app” in the vein of Alibaba’s Alipay and Tencent’s WeChat, which are huge in China. Last month, the company introduced a new “all-in-one” interface with a high-performance savings account, an invoice management system, and new purchasing tools that enable customers to earn rewards.
Pinterest has also been rolling out new features to make shopping easier on its site and is trying to push its bids for advertisers.
“The potential deal would be a big change for [PayPal], but we believe that [el acuerdo de Pinterest] makes sense within the context of the broader business push [de PayPal]”Barclays analyst Ramsey El-Assal told clients.
Pinterest is known as a feel-good corner of the internet. But it doesn’t come without luggage.
The company paid $ 22.5 million last year to settle a gender discrimination lawsuit filed by its former chief operating officer. He did not admit liability as part of the settlement.
Download Giovanni Zarrella – CIAO! (Gold Edition) Album Mp3 Zip
Download Bernhard Brink – lieben und leben (Schlagertitan-Edition) Album Mp3 Zip
Download JPEGMAFIA – LP! Album Mp3 Zip
Download Elsa Esnoult – 5 (Edition Collector) Album Mp3 Zip
Download Juan Guillermo – Llevo la Música en el Alma Album Mp3 Zip
Download Carmen Linares – Carmen Linares: Básicos Album Mp3 Zip
Download Ricardo Henriquez – Prayer Room Album Mp3 Zip
Download 虹のコンキスタドール – Rainbow Summer Shower Album Mp3 Zip
Download Novelbright – Opening Declaration Album Mp3 Zip
Download Gayle Brannan Jr. – That’s What Love Is Album Mp3 Zip
Download Henry Char – A París Album Mp3 Zip
Download Muroki – Dawn – EP Album Mp3 Zip
Download The Wise Bloods – Let Me Love – EP Album Mp3 Zip
Download Willow House – Finding Home Album Mp3 Zip
Download Various Artists – The Funky Brothers, (Vol.1) Album Mp3 Zip
Download Servants To The Tide – Servants to the Tide Album Mp3 Zip
Download Dj Sonicko – Quarentine Album Mp3 Zip
Download Lucifer Records – Megamind Album Mp3 Zip
Download Charlie Farley – B.F.E. – EP Album Mp3 Zip
Download Jaspar Lepak – Desert Ghosts Album Mp3 Zip
Download Roman Messer – Suanda Music Episode 267 (DJ MIX) Album Mp3 Zip
Download Light Jazz Coffee House – Feelings for Cooking Album Mp3 Zip
Download Rune Sanden – Ein dag Album Mp3 Zip
Download Blandade Artister – Realtime Album Mp3 Zip
Download Nikita Kamensky – V Album Mp3 Zip