Barry Sternlicht doesn’t understand why people invest in WeWork at its current, $16 billion valuation. “Why would you go to to WeWorks (sic) at 300 times EBITDA. If you got shares that are at zero value, like realty cash and incredible compensation,” he said Tuesday, according to a transcript. “When these things go down they do not go from 16 to 14, they go from 16 to 2. There is no elevator down, you hit the floor.”
WeWork , the New York-based co-working company, reached a $16 billion valuation with its latest funding round in March and has raised around $1.4 billion from investors to date. Real estate bigwigs Mort Zuckerman and Bill Rudin are among the firm’s backers. But although the company is profitable, it is making less money than initially hoped.