WeWork to sell 3 businesses on heels of delayed IPO and CEO's ouster: Report
FOX Business' Susan Li discusses WeWork's change in executive management.
WeWork will attempt to sell three segments of its business just months after they were acquired as it looks to raise cash and cut costs in following a failed bid to go public, according to a report on Wednesday.
The real estate and workspace firm has put office management company Managed by Q, networking service Meetup and marketing firm Conductor on the market, The Information reported, citing sources familiar with the matter. All three companies were acquired within the last two years, and none of the three are profitable.
Multiple potential buyers have reportedly expressed interest in the properties, though their value on the open market was not immediately clear. WeWork is said to be aiming to complete the sales by early next year.
WeWork declined to comment.
Efforts to sell the businesses surfaced just one day after WeWork founder and CEO Adam Neumann stepped down from his role amid mounting pressure from investors, including Softbank CEO Masayoshi Son. Privately valued at $47 billion after its most recent fundraising round, WeWork was forced to delay its planned initial public offering (IPO) this week after a chilly reception on Wall Street led the company to slash its targeted public valuation to as low as $10 billion.
Much of the skepticism is said to have originated from concerns about WeWork’s corporate governance standards, ability to turn a profit against heavy expenses and Neumann’s charismatic but erratic leadership style.
Neumann will remain with WeWork as its nonexecutive chairman of its parent the We Company, while We Work executives Artie Minson and Sebastian Gunningham will serve as interim co-CEOs. Neumann also agreed to give up majority control of the company, while wife and co-founder Rebekah Paltrow Neumann is expected to step down as chief brand and impact officer.
CLICK HERE TO READ MORE ON FOX BUSINESS
WeWork could lay off as many as half of its 15,000 employees as it looks to cut down on expenses and re-focus on its core business, TechCrunch reported.