Dan Primack: commitment

Transcript context

…Totally. So now all of a sudden, you’ve taken out the time frame of which they’re going to realize returns on this asset. But if they can turn this around, turn it into what it does still have to potential to be, not the same business everyone thought it was, but a good business and big one with real estate assets all around the world, well now maybe they just saved the Vision Fund. I will say that there is an ongoing question of why they didn’t let JPMorgan do the bailout. I almost get the sense that JPMorgan looked at this and said with SoftBank’s deal, “All right. If you want this problem, your problem. Take it.” It was almost like a hot potato. I don’t quite understand why SoftBank was willing to catch that. You could argue it would have been too much debt and the company would have sunk under the debt. You could make that argument, but it was money. It was money, it was a lifeline, it was runway. This brings us to what we normally call, What Would Have Happened Otherwise. In this episode, I’m going to call it, The Bizarro World WeWork. We’ve got this comp. It’s IWG. Last year they did $3.3 billion in revenue. This business ends up looking a lot like WeWork at maturity that was profitable $200 million in operating profit. Their market cap is about $4.6 billion, so we’re getting close to the neighborhood of where you’re basically buying a business that looks like IWG. You run that for a while, it’s going to be profitable for you.…

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