T. Rowe Price admits WeWork was ‘a terrible investment’

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T. Rowe Price: WeWork was a “debacle” that caused it “outsized headaches and disappointments.”

“We are ready to declare this a terrible investment.” That’s the blunt conclusion made by asset manager T. Rowe Price Inc. on its WeWork investment.

Bleeding money, WeWork saw its valuation collapse last year and scrapped its highly anticipated initial public offering, and eventually sold a controlling stake to SoftBank Group 9984, +1.96% in a deal that ousted co-founder and CEO Adam Neumann.“Explicit in our investment was an understanding with WeWork’s management that they would slow the company’s blistering pace of growth and focus instead on developing a more sustainable business strategy,” T. Rowe Price said.

After selling off about half of its original investment through sales in 2017 and 2019, “we also had a tentative deal to sell our remaining shares to a large investor in early 2019. Unfortunately, WeWork’s management had to approve the transaction, and they refused.”

 

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How did people think this would work. Not everything can come down to just being a service

You should never let these clowns manage your money

Why do you guys keep twitting the same thing

I’m not gonna throw shade, but negative free cash flow associated with real estate, doesn’t lie.

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