Oh, this sounds like the makings of a winning strategy!!!
Rather than just renting desks, the company aims to encompass all aspects of people’s lives, in both physical and digital worlds.
The We Company will be comprised of three main business units: WeWork, its main office business; WeLive, a fledgling residential unit; and WeGrow, a still evolving business that currently includes an elementary school and a coding academy.
The valuation only went down from $50 to $47 billion, but the $2 billion investment only covers two more months of losses.
Leasing prices were down in almost all of its markets. So cash flow is expected to continue to worsen.
Instead of $27 billion in the bank to cover at least the next 18 months worth of losses, they now have only a third of that amount in the bank.
It will be interesting to see how they pivot to their new reality.