- WeWork wants to sell three of the companies it has acquired since 2017, The Information first reported on Wednesday.
- A source familiar with the situation confirmed to Business Insider that WeWork was looking to offload three businesses: Managed by Q, Conductor, and Meetup.
- WeWork is putting the three companies up for sale as its new CEOs look to cut costs, according to The Information.
- The move follows Tuesday’s leadership shakeup at WeWork as cofounder Adam Neumann stepped down as CEO and was replaced by co-CEOs Artie Minson and Sebastian Gunningham.
- The Wall Street Journal recently reported that the new CEOs emailed staff about plans to “closely review all aspects” of the company and said employees should expect “difficult decisions ahead.”
- Visit Business Insider’s homepage for more stories.
WeWork wants to sell three of the companies it has acquired since 2017, The Information’s Cory Weinberg first reported on Wednesday. A source familiar with the situation confirmed to Business Insider that the company was looking to offload three businesses: Managed by Q, Conductor, and Meetup.
WeWork is putting the companies up for sale as it looks to cut costs during the turmoil surrounding its initial public offering, according to The Information. Weinberg also reported that these companies lost money despite getting “hundreds of millions” in revenue.
The Wall Street Journal reported on Tuesday that WeWork’s new co-CEOs, Artie Minson and Sebastian Gunningham, wrote in an email to employees that they planned to “closely review all aspects” of the company and that staff should expect “difficult decisions ahead.”
WeWork’s larger-than-life cofounder Adam Neumann stepped down as CEO on Tuesday, saying “the scrutiny directed toward me has become a significant distraction.”
WeWork, the 9-year-old coworking-space startup, publicly filed for its IPO in August as part of The We Company; the IPO has been shelved. It's now "unlikely" that the company will go public in 2019, according to The Wall Street Journal.
Read about Managed by Q, Conductor, and Meetup below:
Managed by Q
Date acquired by WeWork: April
Acquisition price: $220 million
What it does: Managed by Q is an office-management platform that can be used to hire office support, like maintenance, IT, and receptionists.
Sources: The We Company, The Wall Street Journal
Date acquired by WeWork: March 2018
Acquisition price: $113.6 million in cash and stock
What it does: Conductor is "a marketing services software company that provides search engine optimization and enterprise content marketing solutions," The We Company wrote in its IPO filing.
Date acquired by WeWork: November 2017
Acquisition price: $200 million
What it does: "Meetup is a self-service offering that connects people who share interests, seek to organize events, desire to learn new things, or just want to do more of what they already love," The We Company wrote in its IPO filing. "On average over 12,000 Meetup events get self-organized every day, with over 1.1 million total Meetup events taking place at our locations in the six months ended June 30, 2019."
Meetup cofounder and chairman Scott Heiferman tweeted a photo of himself and Neumann hugging following The Information's report on the businesses being up for sale.
— Scott Heiferman (@heif) September 25, 2019
Sources: Business Insider, Business Insider