WeWork’s financial troubles keep getting worse. The embattled co-working company reported $2.1 billion in losses in the first quarter, according to the Financial Times. WeWork also shed 200,000 members over the last year, about a quarter of its membership. Membership dipped to 490,000 in March, from 693,000 in March 2020. Adding to that, the firm has spent hundreds of millions of dollars trying to restructure its portfolio. About $500 million in losses for the quarter
A WeWork landlord has sued the coworking company for allegedly attempting to move its tenants to another location after defaulting on its lease in Chelsea. Walter & Samuels, the owner of 214 West 29th Street, filed the lawsuit on Friday in New York State Supreme Court, seeking to recoup damages — an amount it says would still need “to be determined at trial,” but estimated to be “in excess” of $37 million. The lawsuit alleges
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The former head of WeWork’s real estate investment arm has joined the quantitative hedge fund Two Sigma to help launch its new property investment platform. Rich Gomel joined the data-centric hedge fund as chief investment officer for its new Two Sigma Real Estate platform, the company announced Wednesday. “We’re focused on where we think the data and technology give us the most competitive advantage,” Gomel said. He added Two Sigma will use data sets like
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WeWork will begin to accept cryptocurrency, including Bitcoin and Ethereum, as a form of payment for its workspaces. The company announced Tuesday that customers can use the currency to pay for memberships; it will then use the cryptocurrency to pay its landlords and other vendors whenever possible, the Commercial Observer reported. “WeWork has always been at the forefront of innovative technologies, finding new ways to support our members,” CEO Sandeep Mathrani said in a statement
WeWork’s co-founder and ex-CEO Adam Neumann has sold his northern California estate for $22.4 million, according to the New York Post. Neumann bought the sprawling property in 2018 for $21.4 million. The home sits on 10.8 acres outside the Bay Area and stretches over 12,500 square feet. Following his humbling exit from WeWork in 2019, Neumann put several of his properties on the market. The seven-bedroom, seven-bathroom home in Corte Madera was listed last August
WeWork, which recently struck a $9 billion deal to go public via a special-purpose acquisition company, is still working on its path to profitability. Part of that strategy involves shedding space around the globe. In its latest move, the co-working company exited its 90,000-square-foot office in Hong Kong, according to the South China Morning Post. That amounts to a 20 percent reduction in the territory, leaving WeWork with 360,000 square feet of office space. The
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If at first you don’t succeed, try, try again: Two years after its failed IPO, WeWork has struck a deal to go public with a special-purpose acquisition company. The merger with BowX Acquisition Corp. would value the embattled flexible-office company at $9 billion including debt — a fraction of its $47 billion valuation in 2019. WeWork will get $1.3 billion in proceeds from the SPAC deal, including $800 million from a PIPE, or private investment
Investors betting on WeWork’s second act just got a wake-up call. The co-working company lost $3.2 billion last year as the Covid-19 health crisis slashed the demand for flexible office spaces, the Financial Times reported, citing documents shown to possible investors. The pandemic caused WeWork’s occupancy rates to fall 47 percent in 2020, down from 72 percent at the beginning of the year, according to the documents reviewed by the publication. Its losses shrunk from
Knotel is bringing on a WeWork veteran to help straighten out the bankrupt flex-operator. Former WeWork vice chairman Michael Gross will join Knotel as its chief executive, the Wall Street Journal reported. Gross’ first order of business will be to reduce Knotel’s significant losses. The company already plans to close a number of its locations as part of its bankruptcy restructuring. A judge last week approved Newmark’s purchase of Knotel. “I see bankruptcy not as
“When you tell a 30-something male he’s Jesus Christ, he’s inclined to believe you.” That’s a line from the trailer for Hulu’s new crime-thrilleresque documentary on WeWork, set to hit the streaming service April 2. The two-and-a-half minute preview for “WeWork: Or The Making And Breaking Of A $47 Billion Unicorn” released Wednesday gives a glimpse into the highly anticipated treatment of the biggest boom-to-near-bust real estate story in recent memory. “For God’s sake, they’re