Battling WeWork offloads multiple, non-core businesses
After its botched IPO, it is selling all of or stakes in Teem, The Wing, Meetup and Managed by Q, among other failed ventures
Bengaluru — Shared workplace operator WeWork said on Wednesday that it has sold cloud and analytics services provider Teem to digital workplace solutions provider iOffice, as it offloads non-core businesses after a botched initial public offering (IPO) last year.
WeWork also sold a minority stake in The Wing, a community space provider designed for women, to a consortium of existing and new investors.
The company did not reveal the financial terms of the transactions.
The money-losing office space operator is under pressure to cut costs after it pulled its IPO last year and saw a steep plunge in valuation to less than $8bn from $47bn.
WeWork also said it is in the process of selling other non-core ventures, such as Meetup and Managed by Q.
The company said it has wound down restaurant co-working start-up Spacious and will shutter Manhattan-based private school WeGrow at the end of the 2020 school year. In December, WeWork sold Conductor, a content marketing technology company.
WeWork secured a $1.75bn credit line with Goldman Sachs in December. The facility is expected to be available within the coming weeks, the company said. However, a separate deal to secure $3bn from Japan’s three biggest banks has stalled as the lenders have hit internal limits, complicating a $9.5bn rescue package for WeWork, Reuters reported in December.