David Rosenthal: uncertainty

Transcript context

…There’s a lot of money in and again, they have marked it up themselves. If they have just kept things at cost, things would have maybe been a little bit better. But yeah, it leaks out, it becomes a cavalcade, and eventually, Adam leaves. Again, there were first talks. SoftBank wants the IPO not to happen, then SoftBank thinks Adam Neumann should leave. Well, Adam’s not leaking that. There’s no reason for anybody else to be. SoftBank’s leaking that. I should say for the record SoftBank says they didn’t leak it. There we have it. We don’t know who did, somebody did. The end of all of this is that the company is now running really on fumes. Shockingly low on cash. Remember how much money they were planning to get? They were looking to bring in $3 billion with the IPO and then they also agreed, JPMorgan had arranged a massive $6 billion debt package which was concurrent to the IPO. WeWork, in whatever it is, in August looks at its balance sheet and says, “We running really low on cash.” But come the end of September, we’re going to have $9 billion and they have banked that in their brains and in their models. At that point, they got $9 billion coming in September. Spend and, by the way, really spend because wouldn’t it be great if we go public in right after Labor Day? Then five weeks later, we can come out with Q3 financials would show massive growth, so let’s goose the growth now.…

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