WeWork’s Enterprise Value Worth ‘Less Than Zero,’ NYU’s Galloway Says

WeWork’s Enterprise Value Worth ‘Less Than Zero,’ NYU’s Galloway Says

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Business

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Hard

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The transcript discusses a financial deal involving SoftBank and WeWork, highlighting the strategic move to save face for the Vision Fund. It examines the financial implications, questioning the company's valuation and potential negative worth due to long-term leases. The discussion also covers alternative solutions like a loan-to-own package coordinated by JP Morgan, emphasizing the importance of SoftBank's intervention to prevent American banks from taking over the Vision Fund's largest investment.

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5 questions

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1.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What was the primary reason SoftBank invested in WeWork according to the discussion?

To diversify their investments

To expand their real estate portfolio

To save face for the Vision Fund

To compete with American banks

2.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is the skepticism surrounding WeWork's reported valuation?

It is considered accurate

It is thought to be overvalued

It is believed to be undervalued

It is irrelevant to investors

3.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is one of the inherent values mentioned about WeWork?

Its large workforce

Its strong financial position

Its global brand recognition

Its innovative technology

4.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What financial challenge does WeWork face according to the discussion?

Lack of office space

Decreasing market demand

Long-term lease obligations

High employee turnover

5.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Why was SoftBank opposed to the JP Morgan loan-to-own package?

It would increase their debt

It would allow American banks to take over

It was too expensive

It conflicted with their investment strategy