WeWork plans to sell Managed by Q at major loss

Talks are part of wider effort to cut costs after failed IPO

Dec.December 19, 2019 11:15 AM
WeWork co-CEO Artie Minson and Managed by Q founder Dan Teran (Credit: Wikipedia, Getty Images)

WeWork co-CEO Artie Minson and Managed by Q founder Dan Teran (Credit: Wikipedia, Getty Images)

WeWork is in talks to unload one of its business units at a major discount as the co-working company struggles to get back on track.

According to Bloomberg, talks are underway to sell Managed by Q, an office-management platform, for less than $55 million — only eight months after reportedly paying $220 million for the company.

The acquisition was led by former WeWork CEO Adam Neumann, who wanted to diversify his business. Neumann stepped down from his position in September.

At last week’s SALT conference in Abu Dhabi, Managed by Q’s founder Dan Teran addressed the negotiations directly. “I’m actively working to buy back my company,” he said. The Real Deal reported Dec. 11 that he was competing with another bidder, Eden.

WeWork has announced major structural changes in recent months, including the layoffs of thousands of staff — more than 900 in New York.

Neumann is also making changes. A report Thursday suggested he was looking to step back from investment projects in San Jose, and he is trying to sell his Gramercy Park penthouse. [Bloomberg] — Sylvia Varnham O’Regan

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