NYU marketing professor Scott Galloway thinks WeWork is worth about a tenth of its private valuation. He's not alone in questioning it.
as of the close of its last funding round in January. Given its business model, its huge obligations, and all the other challenges and red flags it faces, the company isn't rationally worth anywhere close to that, Galloway argues.Analysts might be able to make the case that WeWork might eventually be worth $10 billion, but right now, Galloway said,"it is very difficult to find, in my view, any argument that this thing is worth more than $5 billion.
"You're going to see a destruction in value here on a gross level that could be unprecedented in the marketplace ... in recent memory," he said."You haven't seen that sort of value destruction," he continued,"since ... the dot-com destruction" of the early 2000s. If WeWork does try to IPO at a $47 billion valuation, Galloway isn't the only one who thinks it will have a tough time convincing investors it's worth that much.
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