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Rentberry has announced that it has secured significant investment from Silicon Valley venture capital fund 369 Growth Partners in its hopes to make a bid for the struggling WeWork.
The San Francisco-based home rental platform publicly expressed interest last month following news of WeWork’s ousted cofounder Adam Neumann revealing his desire to repurchase the company — although Neumann’s discussions with hedge fund manager of Third Point, Dan Loeb, have not led to any official commitments for a bid.
According to Rentberry’s initial announcement, “In this process, Rentberry has partnered with leading VC funds, including Berkeley Hills Capital, and is represented by Dentons LLP. The company is collaborating with WeWork’s advisors, PJT Partners, to submit the acquisition offer during the week of February 19th. The company looks forward to sharing more details as the acquisition process progresses.”
Since then, there has been no official company announcements on whether that acquisition offer has been made.
In Rentberry’s more recent news update, CEO Oleksiy Lubinskiy boasted the company’s new strategic partnership as one that is set to accelerate Rentberry’s 2024 expansion plans, drive innovation within rental markets, and fuel “the company’s potential acquisition of WeWork, the flexible workspace provider.”
“With the support of 369 Growth Partners, we plan to synergize WeWork’s coworking spaces with Rentberry’s innovative flexible living concept,” Lubinskiy stated.
The investment from 369 Growth Partners, known for successfully backing large tech companies like SpaceX and Instacart, suggests a certain level confidence in Rentberry’s vision. By integrating WeWork’s coworking spaces with Rentberry’s flexible living concept, the company claims it will create seamless transitions between tailored living arrangements and flexible work environments.
The company states that a merger with WeWork would create a strategic partnership that addresses the growing demand for adaptable professional and personal spaces across global markets. Currently, Rentberry operates in over 50 countries and process “over 60 million properties on a yearly basis.”
Despite the emergence of interested parties, WeWork has publicly expressed its not interested in a buyout. Instead, the company says it remains focused on its long-term independence. In court filings, WeWork is stressing its business restructuring and the renegotiation of lease agreements to alleviate unsustainable rent expenses. However, previous court filings also reveal that WeWork is actively seeking new financing as it stands at a critical moment in its bankruptcy proceedings.
The company reported a $153.7 million loss in January. Since filing for chapter 11 bankruptcy, WeWork has assumed 21 leases and rejected 93. However, more than half of its North American locations remain up in the air.
