Molson Hart

WeWork's problem is not its business model. The problems are: - Its totally absurd expectation setting. It's not a tech company and while it has some competitive advantages, they're nothing like their valuation - Bullshit accounting metrics like "community adjusted EBITDA"

In downturns, they're on the hook for their long-term leases, but their customers (mostly) are not. I write "mostly" because weworks contracts are full of trick clauses that make it difficult to leave without fines/punishment. WeWork has two main types of clients.

1. Larger businesses 2. Small-time entrepreneurs In downturns, larger businesses are still on the hook for their long-term leases, so, despite what @sandykory says, it's not easy for them to just jump into a wework.

Small-time entrepreneurs, when their revenues fall in a downturn, just start working at home. So, no, @WeWork's revenues will not rise in a downturn. For whatever it's worth, I feel knowledgeable about this topic because:

- I have a small business - I have worked at WeWork - I have worked at other coworking spaces (cheaper than wework!) - And I've worked at home when I felt like I was spending too much money coworking (a myopic decision actually - coworking is good for social life)