Oct 23, 2017

In a bet against college, WeWork acquires a coding bootcamp

WeWork will open coding academies within all its office spaces. (Photo: Flatiron School)

WeWork, the office leasing giant, has acquired the New York-based Flatiron School, a private coding academy, in a gamble on 15-week, $15,000 vocational education as opposed to far more expensive four-year college degrees. The companies did not disclose the precise value of the cash-and-stock deal. At $20 billion, WeWork is tied for the sixth most-valuable startup in the world.

Why it matters: At a time many experts and politicians are questioning the assumption that college is for everyone, the deal bets on a fashionable form of vocational education — coding — as a route to well-paying software jobs. The plans are to expand Flatiron from its single location in New York's financial district into most of WeWork's approximately 170 offices, which would further test the growing idea of bypassing college, at least in the U.S. tech world.

The deal fits WeWork's cultural play: WeWork rents out exquisitely designed and operated office spaces with the feel of boutique hotels. Adam Enbar, co-founder of Flatiron, said the deal, which was signed Oct. 11 but announced only today, aligns with a cultural shift to which WeWork is marketing. "More than prior generations, people want community at work," Enbar told Axios. "When you imagine education in a space, it starts to make sense. One of the most powerful forms of community is learning."

Six days after the agreement, Flatiron signed a settlement with the New York Attorney General in which it agreed to more clearly disclose its hiring and salary rates. Almost all graduates find jobs within six months, but they range from full-time positions to internships. The settlement included a $375,000 payment. The school appears now to be in full compliance.

Artie Minson, WeWork's CFO, said the deal was in the works for nine months. Enbar said that many on-line schools were failing to teach effectively because most students need to be with other students while they learn, and not just learning content at home alone. That is why the physical school is important. "We forget about that," he said. "Something is lost when you remove a physical community."

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Coronavirus dashboard

Illustration: Sarah Grillo/Axios

  1. Global: Total confirmed cases as of 7:30 p.m. ET: 660,706 — Total deaths: 30,652 — Total recoveries: 139,304.
  2. U.S.: Leads the world in cases. Total confirmed cases as of 7:30 p.m. ET: 121,478 — Total deaths: 2,026 — Total recoveries: 1,072.
  3. Federal government latest: President Trump is considering a quarantine on New York, parts of New Jersey and Connecticut.
  4. State updates: Alaska is latest state to issue a stay-at-home order — New York is trying to nearly triple its hospital capacity in less than a month and has moved its presidential primary to June 23. Some Midwestern swing voters that supported Trump's handling of the virus less than two weeks ago are now balking at his call for the U.S. to be "opened up" by Easter.
  5. World updates: In Spain, over 1,400 people were confirmed dead between Thursday to Saturday.
  6. 🚀 Space updates: OneWeb filed for bankruptcy amid the novel coronavirus pandemic.
  7. Hollywood: Tom Hanks and Rita Wilson have returned to U.S. after being treated for coronavirus.
  8. What should I do? Answers about the virus from Axios expertsWhat to know about social distancingQ&A: Minimizing your coronavirus risk
  9. Other resources: CDC on how to avoid the virus, what to do if you get it.

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Coronavirus updates: Deaths surge in Italy and Spain

Data: The Center for Systems Science and Engineering at Johns Hopkins, the CDC, and China's Health Ministry. Note: China numbers are for the mainland only and U.S. numbers include repatriated citizens and confirmed plus presumptive cases from the CDC

The novel coronavirus has since Friday killed 889 more people in Italy and 832 others in Spain, which announced all non-essential workplaces would close for two weeks.

The big picture: The number of deaths from COVID-19 surpassed 2,000 on Saturday in the U.S., which leads the world in confirmed coronavirus infections — more than 121,000, per John Hopkins. The number of those recovered from the virus in the United States passed the 1,000-mark on Saturday evening.

Go deeperArrowUpdated 29 mins ago - Health

U.S. coronavirus deaths top 2,000

Nurses in masks, goggles, gloves, and protective gowns at Penn State Health St. Joseph conduct drive-thru coronavirus testing in Bern Township, Pennsylvania on March 27. Photo: Ben Hasty/MediaNews Group/Reading Eagle via Getty Images

More than 2,000 people have died from the novel coronavirus in the U.S. as of Saturday, per data from the Center for Systems Science and Engineering at Johns Hopkins University.

Why it matters: Recorded deaths in the U.S. surpassed 1,000 two days ago. The U.S. has the most COVID-19 cases in the world, exceeding China and Italy.

Go deeper: Trump weighs quarantine of New York, New Jersey, Connecticut