WeWork has begun looking for a buyer for its operating business in Russia: the company is negotiating the assignment of lease rights for all of its premises in Moscow with several large networks of coworking spaces and flexible offices. One of WeWork’s partners, two potential bidders for its assets and three consultants who worked with different parties to the negotiations, told Vedomosti about this.
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WeWork has been in business since 2010, with founder Adam Neumann pledging to build the world’s largest coworking space. At the end of 2019, the company had over 800 offices worldwide. At the beginning of last year, it announced plans to go public and attract about $ 3 billion from the sale of shares and $ 6 billion from banks for its development. At that time, the company’s capitalization was estimated at $ 47 billion. However, the IPO of the network did not take place: the company was still unable to explain to investors how it was going to profit. It grew too fast, renting more and more offices around the world. By the time of the planned listing on the exchange, WeWork had almost completely used up its funds – $ 2.4 billion.In the first half of 2019, its loss amounted to $ 905 million with $ 1.54 billion in revenue. In addition, a conflict of interest has emerged between WeWork and its founder, Neumann. It turned out that the company rented part of the property from him.
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