Wework sells software firm Teem as it slims down after float fiasco
Wework today said it has sold management software firm Teem as the troubled coworking company offloads fringe businesses after its botched initial public offering (IPO) last year.
The sale to digital workplace solutions provider iOffice came as Wework also offloaded its minority stake in coworking startup The Wing.
Wework said the deals, whose values were not disclosed, formed part of its efforts to focus on its core workspace business. Last month the company sold content marketing company Conductor back to its executives.
“Last quarter, we articulated a long-term plan for disciplined growth and a clear path to profitability, and we continue to execute on this plan each day,” said co-chief executive Artie Minson.
“These sales mark the latest progress in Wework’s evolution and allow our talented team to focus on the core business and delivering an exceptional experience for our members.”
The office space operator said it has wound down restaurant coworking firm Spacious and will shut its New York private school Wegrow at the end of the 2020 school year. It is also in talks over the sales of other non-core ventures such as Meetup and Managed by Q.
Wework is under pressure to cut costs after its aborted IPO last year, which caused its valuation to plummet and led to a dramatic bailout by Japanese investment giant Softbank.
Since founder Adam Neumann was ousted in September, new bosses Minson and Sebastian Gunningham have laid off roughly 2,400 employees.
Wework secured a $1.75bn (£1.3bn) credit line with Goldman Sachs in December, which is expected to be available in the coming weeks.
However, Softbank’s attempts to secure $3bn from three Japanese banks have stalled, Reuters reported last month, creating a new hurdle for Wework’s rescue plans.