|Originally posted by cliffw:|
I had never heard of WeWork. maryjane's link left me confused. I though the scam was by the disgruntled workers who think they have bargaining power. Sounds like they are crying over spilled milk like it will un-spill.
Several scams perpetrated.
The employees bought into and believed their own hype.
The company, in the form of it's founder convinced a lot of people, that they were a rising star tech/software company when in reality they were just a real estate rental agent.
The big Chinese finance company called SoftBank, propped up the pyramid with billions in investment capital, getting others to invest in that bank based on what the scam was purportedly capable of producing.
The founder and CEO saw the collapse coming, took his cut and ran.
The biggest part of the scam was in the valuation, which in part, was most loudly touted by SoftBank. WeWork is not the biggest workspace lease agent by any metric, but because of the false narrative and marketing ploy, somehow was (falsely) valued billions of $$ more than their nearest competitor. Smoke and mirrors...
[This message has been edited by maryjane (edited 11-10-2019).]