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WeWork troubles deepen as SoftBank pulls its $3 billion tender offer

4Apr By reutersNo Comments

BUSINESS

WeWork troubles deepen as SoftBank pulls its $3 billion tender offer

Softbank said it has terminated a $3 billion tender offer for additional WeWork shares agreed last year with shareholders, drawing threats of legal action and plunging the floundering office space company further into crisis. The tech investment giant said in a statement that given its duty to its shareholders it could no longer proceed with the deal, citing criminal and civil probes into the startup, WeWork’s failure to restructure a joint venture in China and the impact of the coronavirus pandemic. A special committee of WeWork’s board said it was disappointed and is considering “all of its legal options, including litigation.” SoftBank’s decision to rescind the offer means the Japanese firm is no longer obligated to proceed with a further $1.1 billion in debt financing for WeWo...

WeWork Appoints Indian Origin CEO to start fresh chapter

3Feb By PriyankaNo Comments

News

WeWork Appoints Indian Origin CEO to start fresh chapter

New York, Feb 3, 2020: Embattled office-sharing firm WeWork has hired a new CEO to turn the page on Adam Neumann, its co-founder and former leader whose antics have finally tired investors. Indian origin Sandeep Mathrani, a real estate industry veteran, will officially take over on February 18, WeWork said in a statement published Saturday. He will be charged with the difficult task of relaunching WeWork, which had been one of America''s most celebrated startups that put a mammoth footprint in the commercial real estate of major cities around the globe. Its collapse led to Neumann''s departure and cost the main shareholder, Japanese billionaire Masayoshi Son, billions of dollars. Mathrani will replace Artie Minson and Sebastian Gunningham, who have been acting as interim CEOs s...

Bollywood Singer Sukhbir Singh Make its fifth Investment, Invest in a Coworking Startup

10Oct By AdityaNo Comments

FUNDING

Bollywood Singer Sukhbir Singh Make its fifth Investment, Invest in a Coworking Startup

Famous Bollywood singer Sukhbir invested an undisclosed amount in Noida-based co-working and co-play startup Nukleus. As part of the deal, Sukhbir Singh will join the advisory board of the startup as an active member. Founded in 2018, Nukleus said it has rapidly emerged as one of the biggest coworking companies in Delhi-NCR region. With the focus to cover major Tier I and II cities, Nukleus is aiming to open 10+ coworking centres across the country. Founder and CEO of Nukleus Nipun Gupta expressed his deep interest in adding more value to the Indian office ecosystem, through collaborations and expansions in the coming years. Sukhbir and Nipun are excited to share a similar vision of making a difference in the way people spend time at the workpla...

WeWork CEO Adam Neumann decided to Step down

25Sep By PriyankaNo Comments

News

WeWork CEO Adam Neumann decided to Step down

WeWork co-founder Adam Neumann has decided to step down as CEO of the office sharing startup, people with knowledge of the matter said, citing pressure from board members tied to SoftBank. Neumann will remain as chairman of the company he started in 2010, and he continues to control a majority of voting shares, the sources said. The company confirmed the report, saying the change is effective immediately. As we published an article on sunday, there were speculation in the WeWork board to replace Adam Neumann as chief executive. The showdown between SoftBank and Adam comes after We Company postponed its initial public offering (IPO) last week. SoftBank is considering to make Neumann as a interim CEO and hired an external replacement. However, SoftBank could choose not to ...

WeWork Delayed IPO Launch by End of 2019

21Sep By AdityaNo Comments

Market

WeWork Delayed IPO Launch by End of 2019

A stock offering from fast-growing office-sharing startup WeWork is being delayed and will likely occur by the end of 2019, the parent company said. The news from The We Company, which had filed paperwork for an expected listing this month, puts off the listing amid concerns about a huge overvaluation of the company. "The We Company is looking forward to our upcoming IPO, which we expect to be completed by the end of the year," a company statement said late Monday. "We want to thank all of our employees, members and partners for their ongoing commitment." The We Company, its parent firm, was thought to be moving forward with listing on the Nasdaq next week. WeWork had been expected to launch its IPO roadshow on Monday to market its shares to potential investors. Bu...

CoWrks acquires on-demand Workspace Startup The UnCube

15Aug By PriyankaNo Comments

ACQUISITION

CoWrks acquires on-demand Workspace Startup The UnCube

Leading co-working startup CoWrks announced the acquisition of The UnCube, which provides on-demand workspace solution. The development signals consolidation in the fast-growing co-working segment, which is accounting for 15-20 percent of the total office space leasing across major cities. Recently, Oyo acquired Innov8 to enter into this business. After the acquisition, Bengaluru-based CoWrks will now rename the entity to CoWrks Go. Currently, CoWrks has 25 operational centres and 25,000 members spread across 2 million sq ft area with presence in major cities. Founded by Sakshi Khanna in 2017, The UnCube provides co-working space for professionals on transit by partnering with restaurants and cafes. It currently has 2,500 members working across 200 locations in seven cities suc...

WeWork Files For an IPO, Trade Under “WE” ticker

15Aug By PriyankaNo Comments

Market

WeWork Files For an IPO, Trade Under “WE” ticker

Co-working startup WeWork filed for an IPO after its parent company "We company" proposes it's stock sale, despite losing money amid rapid expansion. The We Company will trade under the "WE" ticker, as per the reports estimated the IPO valuation will be between $3 and $4 billion. The company also reached an agreement with a consortium of large banks including JPMorgan Chase and Goldman Sachs for a $6 billion credit facility that will close with the stock offering. "Not only do we believe our business model mitigates the pressures of an economic recession but we also believe that our model could position us well in a downturn," it said in the filing. "An economic downturn may provide us an opportunity to further scale our platform at more attractive unit economics. The New Yor...

6Aug By AdityaNo Comments

FUNDING

GoWork raises $53 mn debt funding from BlackRock, CLSA Capital

Coworking space provider GoWork has raised USD 53 million (around Rs 375 crore) debt funding from US-based BlackRock and CLSA Capital Partner to expand its business. GoWork currently has two coworking centres at Gurugram in Haryana, spread over 8 lakh square feet with a capacity of 12,000 seats. "GoWork has raised USD 53 million from a private fund managed by BlackRock's Private Credit team, along with CLSA Capital Partners' Special Situations Group, in a round of debt funding," the Gurugram-based coworking firm said in a statement. This is the first onshore private financing transaction in India by global investment management firm BlackRock, it added. GoWork will use this funding to further scale the business and provide value-added services to its clients. GoWork CEO &am...

Coworking Startup GoHive raises $363k from investors

2Aug By AdityaNo Comments

FUNDING

Coworking Startup GoHive raises $363k from investors

Co-working startup GoHive has raised $363K (Rs 2.5 crore) from investors to expand its operations. GoHive currently operates seven co-working centres in Delhi/NCR. "GoHive has raised $363K in a pre-Series A round from seasoned angel investors to fuel its growth and expansion plans," a company statement said. With this funding, GoHive said it aims to double its current size and reach 5,000 seats within a year, with presence in NCR, Bengaluru, and Mumbai. The round has showcased investors' confidence in our business strategy and our initiative to make spaces more accessible and suitable to different business needs, empower young companies, and enable deeper business inclusion in the ecosystem," said GoHive Founder & CEO Mishu Ahluwalia said. Co-working segment is gaining mome...

OYO acquires Innov8 for $30 million to enter into co-working business

16Jul By PriyankaNo Comments

ACQUISITION

OYO acquires Innov8 for $30 million to enter into co-working business

Hospitality firm OYO announced entry into a new vertical, OYO Workspaces, targeting the co-working opportunity in India with an aim to have 50 centres across the country having a total seat count of around 35,000 by the end of 2019. It also formally announced the acquisition of co-working firm Innov8 during the year. Currently, Innov8 has 16 centres across the country with over 6,000 seats. According to the deal, Innov8 was acquired for around USD 30 million (about Rs 205 crore). The entire team of Innov8 joined OYO as part of the deal. "This alliance will work towards simplifying and strengthening the co-working experience for Indians while tapping the enormous opportunities this space offers," Innov8 founder Ritesh Malik said. The debut of OYO Workspaces follows a multi-bran...

2Mar By AdityaNo Comments

News

WeWork Fired 300 Employees

The giant co-working space company WeWork which now known as the We Company fired 300 employees which are 3% of its total staff, as per the report by TechCrunch. Head office based in New York, WeWork raises total $8 billion funding and valued at a whopping $47 billion. SoftBank Vision Fund is the largest shareholder in the company, invested $2 billion in January. The company employs 10,000 people around the world. As per the sources, the reason behind the layoffs was performance and the company’s routine process of shedding underperformers. Most of the layoffs happen in WeWork’s engineering team, product and user experience design. “Over the past nine years, WeWork has grown into one of the largest global physical networks thanks to the hard work and dedication of our team,” ...

WeWork Raises $2 billion after SoftBank cuts $20 billion Planned Investment

9Jan By AdityaNo Comments

FUNDING

WeWork Raises $2 billion after SoftBank cuts $20 billion Planned Investment

World's leading co-working space provider WeWork raises $2 billion from Softbank in a deal that is billions of dollars below what WeWork hoped. The initial amount that WeWork and Softbank discussed was $20 billion funding to fund the growth of the company and buy out existing shareholders. With the recent funding round, Softbank Group Corp’s invested total $10.4 billion in WeWork including $4.4 billion in 2017 and $6 billion in 2018 and 2019. The initial plan was to invest $10 billion in SoftBank money to fund WeWork’s growth plans and use another $10 billion to buy out employees and other existing investors, according to a person familiar with the matter. That proposal would have given SoftBank majority control of WeWork. Reducing the investment leaves WeWork with $1 billio...