What I'm Reading...

Did Microsoft come back from death?

I was reading an old article by Y Combinator’s founder Paul Graham titled Microsoft is Dead, written in 2007.

His point was that in 2007, nobody –meaning nobody in the startup scene, or nobody who cared about computers– was scared by Microsoft anymore. Microsoft was effectively dead.

It’s been five years since the dark wizard was thrown of the company. I wonder if we can already say that Microsoft is coming back from death.

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Don’t follow the herd

From James Clear’s 3-2-1 newsletter:

If you want to be in the top 1% of a particular domain, then you can’t take your cues from and follow the social norms of 99% of people. This is harder than it sounds. We are wired to imitate. The further you want to climb, the more carefully you need to construct your tribe.

outstanding-work top-performers

WeWork is postponing its IPO

Four reasons why, according to The Economist’s article Why WeWork doesn’t work yet - Daily chart, investors are unsure about WeWork’s parent company IPO:

  1. Lack of Profits.
  2. Recesion: $47B in lease payments but only $4b in committed future revenues from customers. How would the company face a recession?
  3. Corporate governance: WeWork will issue multiples classes of shares that give its founder, Adam Neumann, control with a minority stake.
  4. Company valuation: initially valued at $47 Billion, now the company is considering a more modest $15 Billion valuation.

Lack of profits is usually acceptable for tech companies that are burning cash in customer acquisition. But WeWork is not a tech company. Tech companies have, among other things, very low marginal costs for each new customer acquired.

business-models coworking wework