WeWork’s side businesses are fizzling

Side ventures including WeLive and Powered by We have struggled to expand

National /
Sep.September 19, 2019 10:47 AM
WeWork CEO Adam Neumann (Credit: Getty Images and iStock)

WeWork CEO Adam Neumann (Credit: Getty Images and iStock)

When WeWork rebranded itself The We Company in January, CEO Adam Nuemann sent a clear message about his vision for the firm: it is much bigger than co-working.

But We Company’s side businesses, including co-living venture WeLive, have a patchy track record of success, according to the Wall Street Journal. Some are struggling to survive while others have fizzled out altogether.

The company spent about $164 million on side businesses in 2018 but it earned only $124 million in revenue from all its outside ventures, according to the Journal.

The news follows weeks of scrutiny over We Company’s business model, corporate governance and valuation. The faltering path to expansion has caused perception problems for the firm as it heads into its initial public offering — which has been pushed back — and seeks to convince investors it’s bigger than the co-working brand.

But even as We Company continued to diversify, four acquisitions made between 2017 and 2018 — valued at some $400 million — garnered little mention in the company’s IPO prospectus. [WSJ] — Sylvia Varnham O’Regan


Related Articles

arrow_forward_ios
Tower 535 in Hong Kong and WeWork CEO Sandeep Mathrani (Photos via SOM, Getty)
WeWork exits first Hong Kong location as part of global downsizing
WeWork exits first Hong Kong location as part of global downsizing
From left: Bow Capital's Vivek Ranadivé, Shaquille O’Neal and WeWork's Sandeep Mathrani (Getty)
WeWork to go public in $9B SPAC deal
WeWork to go public in $9B SPAC deal
WeWork CEO Sandeep Mathrani (Mathrani/Wikipemedia, Getty)
WeWork lost $3B in 2020: report
WeWork lost $3B in 2020: report
Michael Gross (Getty, iStock)
Knotel to tap former top WeWork exec as CEO
Knotel to tap former top WeWork exec as CEO
Knotel CEO Amol Sarva and Newmark CEO Barry Gosin (Sarva via Sasha Maslov; Gosin via Newmark)
Newmark’s acquisition of Knotel is approved
Newmark’s acquisition of Knotel is approved
(Getty, iStock, YouTube/Illustration by Alexis Manrodt for The Real Deal)
Hulu unveils trailer for new WeWork documentary
Hulu unveils trailer for new WeWork documentary
Knotel CEO Amol Sarva and Newmark CEO Barry Gosin (Sarva via Sasha Maslov; Gosin via Getty)
Newmark’s bid to acquire Knotel is nearly complete
Newmark’s bid to acquire Knotel is nearly complete
WeWork CEO Sandeep Mathrani, Adam Neumann and SoftBank CEO Masayoshi Son (Getty/Illustration by Kevin Rebong)
WeWork and SoftBank settle lawsuit
WeWork and SoftBank settle lawsuit
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...