More WeWork lols

M

Further to my post a few days back, here’s Scott Galloway’s epic WeWork takedown.

The last round $47 billion “valuation” is an illusion. SoftBank invested at this valuation with a “pref,” meaning their money is the first money out, limiting the downside. The suckers, idiots, CNBC viewers, great Americans, and people trying to feel young again who buy on the first trade — or after — don’t have this downside protection. Similar to the DJIA, last-round private valuations are harmful metrics that create the illusion of prosperity. The bankers (JPM and Goldman) stand to register $122 million in fees flinging feces at retail investors visiting the unicorn zoo. Any equity analyst who endorses this stock above a $10 billion valuation is lying, stupid, or both. 

That about sums it up.

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I'm the co-host of HubShots and the CEO of XEN - helping mid-large B2B companies with their digital marketing and lead generation.

Craig Bailey

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