WeWork stock

I know it just declared bankruptcy, but hear me out. I got this idea from the latest episode of the All In Podcast.

WeWork has amazing locations and invested a ton of cash (too much) to make the sites modern and have great facilities. This level of investment was not sustainable nor profitable, and Softbank took the grunt of the loss. They are also tied to crazy expensive unsustainable leases. Declaring bankruptcy will allow them to refinance them.

The thesis here is that a private equity firm will rescue WeWork for pennies, refinance the leases, and enjoy all the sunk cost that Softbank already invested, making it a viable business.

I'm wondering if there might be a buy opportunity here? “The time to buy is when there's blood in the streets.”