WeWork Sells Control of China Unit
U.S. office-sharing firm WeWork will sell control of its China division to one of its investors – private equity firm Trustbridge Partners – as it steps back from a competitive market where it has suffered low-occupancy rates. The deal effectively offloads the China unit away from the parent, which has faced fundraising issues since a failed attempt to go public in 2019. WeWork will maintain a minority stake and “participating interest. Concurrent with the deal, the division has received $200 million in funding from existing investors.
WeWork shelved its initial public offering in 2019 after investors grew wary of its losses, business model and corporate governance.