The Wall Street Journal reported this week that the parent company of WeWork, We Co., “is exploring a dramatic reduction in its valuation as it aims to go public.” According to people familiar with the matter, We Co. is considering valuing WeWork somewhere in the $20 billion range, meaning that the company would cut its valuation by half. The company is also hoping to receive an infusion of capital from private companies in order to delay its IPO.
Russia-based coworking space company, SOK, is set to open a new coworking space in Tel Aviv in early 2020. The Tel Aviv coworking space will mark SOK’s first location outside of Russia. According to reports, the company leased 3,600 square meters (approx. 18,750 sq ft) on the ninth and eleventh floors of Eas Tel Aviv’s Nitsba Tower. SOK is also planning to increase its footprint in the Israeli market, with potential locations in Jerusalem, Petah Tikva, and Be’er Sheva.
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Suggested Reading: “The Growth of Flexible Workspace in Israel”
WeWork used to have big dreams for co-living, or at least Adam Neumann did. Back in 2015, the company estimated that WeLive would produce revenue of $6060M. Though the company originally estimated to open several co-living locations, to date there are only 2, with a third expected to in Seattle next year. While WeLive hasn’t seen its golden days, the larger co-living industry is quickly picking up, and some co-living companies are securing equity and debt funding in the US and UK. While WeWork was right the co-living would be a big business, it was wrong to assume how quickly it would become quick business and how to monetize it. We highly recommend you read the full article by Bisnow.
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