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This article in Bloomberg gamely tries but fails to make sense of the craze for negative yielding bonds.
Wework floated a debt before filing for IPO! It has been losing money ever since it was founded and it is valued at USD47.0bn!
Regus owner IWG , founded in 1989, has a similar business. It booked revenue nearly twice as high as WeWork did last year yet it has an enterprise value a bit above $4 billion. [Link]
Wework co-founder has reportedly cashed out US$700 million from the company through stock sale and borrowings against shares of Wework. JP Morgan advised him on his sales and it is also advising the company on its debt offering. His shares hold 10 times the voting rights of standard shares. He has properties that are leased back to Wework and he collects millions in rent from Wework! Source: Link
Evidently, he could cash out so much because the company had the chutzpah to issue USD4.0 billion of debt
What a model of ethical capitalism!
It is into this loss-making company with co-founder cashing out such a large sum before IPO that Softbank decided to invest USD 16.0 billion including USD 6.0 billion of new money! The amount was eventually scaled back after partners opposed it.
Blame central banks and their policies for money losing its value and investors losing their heads and eventually, their shirts and trousers.