WeWork Raises New Financing
March 09 2016 - 5:10PM
Dow Jones News
Shared office-space startup WeWork Cos. has raised about $430
million in a new round of financing meant to clear the way for a
major push into Asia.
Chinese investment companies Legend Holdings and Hony Capital
Ltd. led the round, WeWork executives said, in a deal that gives
WeWork a valuation of about $16 billion.That would make it one of
the world's most valuable startups.
WeWork filed a document with Delaware's Division of Corporations
on Tuesday night that said the company is selling $430 million of
stock, but didn't name the investors.
WeWork leases office space from landlords and subleases it to
individuals and companies, offering a hip, communal environment
with plush couches, snacks and games.
It has expanded from a single Manhattan location in 2010 to 65
locations, mostly in major U.S. cities as well as a handful of
cities in Europe and Israel.
Now, company executives said, it is planning to push into
Beijing, Hong Kong, Seoul and other major cities from India to
Japan.
In a statement, Hony Capital's chief executive, John Zhao, said
of WeWork that "the quality of its execution and fit for the
Chinese culture is unparalleled."
New York-based WeWork's valuation has swelled from $10 billion
last summer and $5 billion at the end of 2014. That makes it nearly
as valuable as the country's largest publicly traded office
landlord, Boston Properties Inc., which owned about 10 times the
amount of space that WeWork was leasing early this year.
Write to Eliot Brown at eliot.brown@wsj.com
(END) Dow Jones Newswires
March 09, 2016 16:55 ET (21:55 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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