Name: There's Only One Way to Salvage WeWork
Uploaded: 2019-10-02
Duration: 2 min 35 s
Description: It’s rapidly running out of cash.

[ MUSIC ] Welcome to Fortune Tech Debate, where we discuss the issues of the day in two minutes. Today we're talking about WeWork, a company that is in deep financial distress. They've lost their CEO, they've put their IPO on indefinite hold And what might be in store for them next? [ UNKNOWN ] where is this company headed? Honeslty I htnk this company is headed to the ground, I just don't see a future for them I think the time has come for Wework. Well okay, I will agree these are dyer circumstances for the company. They've got a lot of debt obligations, they've got enough money on had to last for another year. But there are some glimmers of hope, you know, it is now stripping away all of its ancillary businesses. You know, they were running a school at one point, they're getting rid of that they're focusing on their core operations. So there might be some, you know, element here where the company could survive maybe as a ghost of its former self but it could continue to hum along. Yeah, I think it's just a little too little too late. You know? Guess if they're stripping down the we family, but at this point to go back to where it started just isn't an option. Are they moving forward? Are they growing? Are they not and their fact is that they are not and I don't see a future for them. This is a company that needs money. They need cash if they're going to survive. And Masayoshi Son, the head of SoftBank and who has put so much money into this company through his vision Fund, which was 100 billion dollars. He needs this thing to succeed if he realizes all the losses on this right now, it is not gonna look good. He's in the process of raising another fund right now. SoftBank itself has taken on a ton of debt. They need, We Work to continue going. So I think he's just gonna put more money in. All right. What's worse than losing some money, losing more money by continuing to pump money into a failing business. Think it's time for SoftBank to finally cut its losses, say, this one was an nvestment. It didn't pan out. That's not ideal but we have to take what we got. It didn't work and I think they should move on, I think they're going to realize that too. The definite possibility but look this is a company that has so many other companies inside of their, you know they rent office space to so many things it's a key part of the real estate across so many different places. This thing has to keep going on. I don't think it does, I think that there will be no bailout for work, I think the real estate market will move on. [ SOUND ] Well that's all we have time for. Come to Fortune. com for more tech debate. [ MUSIC ] [ BLANK_AUDIO ]