WeWork Completes Strategic Divestitures of Teem and its Minority Stake in The Wing
WeWork, the world’s leading co-working and space-as-a-service platform, announced that this month it has completed the sales of Teem and its minority stake in The Wing. The successful divestitures follow the December sale of Conductor and are part of WeWork’s strategy to focus on its core workspace business.
“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-CEO 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.”
WeWork’s minority equity stake in The Wing, a network of work and community spaces designed for women, was acquired by a consortium of new and existing investors in The Wing. Teem, a leading developer of cloud-based meeting space and analytics solutions, was acquired by iOFFICE, a leader in digital workplace experience solutions.
Commenting on the deals, Minson said: “Working with leaders at Teem and The Wing throughout the sales process, we believe these strategic transactions will position the businesses for long-term success. I look forward to following their continued growth and achievements.”
The terms of the transactions were not disclosed.
WeWork’s Strategic Plan
Following WeWork’s introduction of a new strategy in November 2019, the company has moved to improve its financial position and refocus on its core business, establishing a clear path to profitable growth. One component of this is the divestitures of non-core ventures Conductor and Teem, as well as its stake in The Wing. WeWork has also wound down Spacious and will cease to operate WeGrow at the end of the 2020 school year. Sales of other non-core ventures, such as Meetup and Managed by Q, are in process.
To strengthen the financial position of the Company, Softbank accelerated a $1.5 billion funding payment to WeWork in October 2019 and committed to providing significant new debt funding for the Company consisting of $1.1 billion in senior secured notes, $2.2 billion in unsecured notes and a $1.75 billion letter credit facility. In December, the Company and Softbank entered into a commitment letter with Goldman Sachs for the new $1.75 billion senior secured letter of credit facility, under which WeWork is required to post 0% cash collateral. The facility is expected to be available within the coming weeks.
WeWork provides members with space, community, and services through physical and virtual offerings. Its mission is to create a world where people work to make a life, not just a living. As of 2019 third-quarter close, WeWork had 625 locations across more than 125 cities and 33 countries, as well as 600,000+ memberships, including global enterprises. WeWork is committed to providing members around the world with a better day at work for less.
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