Adam Neumann WeWork Presents The San Francisco Creator Awards At The Palace of Fine Arts Theatre

WeWork pitched itself as a tech firm in the initial public offering documents it released Wednesday.
Investors tend to pay a premium for tech companies.
But WeWork’s revenues, expenses, cash flow, and assets show that it’s not really a tech firm.
Instead, they show it’s clearly a real-estate company.
WeWork stories here.

WeWork would like potential investors to think of it as a tech firm.

But its numbers tell a different story. No matter if you look at WeWork’s revenue and expenses, its assets, or just its cash flow, it looks far more like a real-estate company than a typical tech firm.

The distinction is more than just semantic. The company’s valuation in the public markets will be in large part determined by how investors classify it. They tend to be willing to pay a much steeper premium for tech companies than for real-estate firms.

WeWork, or rather the We Company, its corporate parent, certainly pitched itself as a tech firm in the initial public offering paperwork that it released on Wednesday. The document mentions “technology” 93 times, many of them in connection with its business offerings or investments.

Read this: WeWork files for IPO, revealing spiraling losses of $1.6 billion

“We offer a space-as-a-service …read more

Source:: Businessinsider – Finance


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