WeWork has landed a three-year deal to provide space for 250 employees of Gympass, the gym membership app company that also counts SoftBank as an investor.
The deal is the latest example of WeWork’s majority owner SoftBank using its connections to help buoy business for the company, according to Reuters. Roughly 25,000 employees at companies backed by SoftBank use WeWork office space.
SoftBank rescued WeWork from bankruptcy last year by taking a majority interest in the company following a disastrous and failed initial public offering attempt that led to co-founder and former CEO Adam Neumann to step down. It hopes its network of other companies, such as Uber and Compass, can help turn WeWork around.
Gympass was founded in Brazil but now has its headquarters in New York. The WeWork deal is for office space in Soho that could triple Gympass’ presence in the city.
Gympass was valued at $1 billion last year. The startup lets corporate clients offer gym access to employees through a worldwide network of more than 50,000 gyms and studios. [Reuters] – Eddie Small