WeWork getting higher bid, rethinking on sale of Managed by Q back to its Co-Founder

In last April, WeWork has bought Managed by Q, just months before its initial public offering failed drastically. Not long after, a Managed by Q co-founder was in talks to buy his company back. Now, those talks have fallen through, according to people familiar with the matter. The startup may be sold to a rival instead.  

Dan Teran, the co-founder of Managed by Q was trying to buy the startup back from WeWork. Teran and a group of investors were in talks to buy the company, which offers technology to help businesses manage workplace tasks and services, for less than $55 million, compared to the $220 million WeWork reportedly paid for it last year.

As per news source, WeWork may sell the company to Eden Technologies Inc., a company that has competed with Managed by Q in the past. The final purchase price was more than Teran and his investors were willing to pay.

WeWork has been selling off several acquisitions and investments in the past few months, sometimes at steep discounts to the price it paid. After WeWork’s attempt to go public in September flopped, the cash-burning company was just a few months from running out of money and had to be bailed out by SoftBank Group Corp., its biggest investor. Chief Executive Officer Adam Neumann stepped down. WeWork’s new leadership planned to slash expenses and aim for profitability, which included trying to recoup some money through selling some of its acquisitions and a renewed focus on its core business of office rentals. WeWork also said it would cut about 2,400 jobs late last year.

Since November, WeWork has sold off its investment in women-focused co-working space The Wing and sold Teem, which makes technology for office spaces. The company also sold Conductor, a marketing software startup acquired in 2018, to a group of investors including Conductor’s founder in December.