WeWork is rebranding and expanding its business beyond commercial office workspaces.
The startup operating coworking spaces in more than 25 countries, is evolving into The We Company.
The announcement comes after news that SoftBank, the company’s biggest investor, reneged on plans to invest an additional $16 billion and would instead invest just $2 billion in 2019.
Under the new We Company brand, the startup will consist of three business units. According to Business Insider, the new model includes the spin-offs WeLive and WeGrow. WeLive runs community-oriented co-living “hacker houses” in New York and Arlington.
WeGrow, on the other hand, is more education-focused. It opened its first elementary school last fall with a focus on entrepreneurship that operates out of a WeWork space in New York City.
Beyond desk space, diving into education and lifestyle
Fast Company’s report of the company rebranding comes a day after reports surfaced that WeWork would not receive an expected $16 billion investment. The wide-reaching Japanese investment firm SoftBank had reportedly planned to invest an additional $16 billion into WeWork on top of the $8 billion it previously put in, but the deal fell through in the face of pushback from SoftBank’s government-backed investors in Saudi Arabia and the United Arab Emirates, The Wall Street Journal reported.
The $16 billion additional investment from SoftBank would have given the Japanese firm a majority stake in the startup, however, they will only invest just $2 billion more, which will put The We Company at a $47 billion valuation.
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