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."

Go deeper

In photos: How the coronavirus outbreak is impacting on daily lives

A woman receives a rose delivered to her via a drone in Lebanon's coastal city of Jounieh. Photo: Joseph EidAFP via Getty Images

The novel coronavirus pandemic is having a huge impact on the lives of people around the world.

The big picture: The first known case outside China was in Thailand on Jan. 13. Since then, global infection numbers have surged, and governments around the world have responded with measures designed to curb the spread of the virus — ranging from lockdowns to physical distancing enforcement. There were more than 723,000 confirmed COVID-19 infections by early Monday, per Johns Hopkins data). However, life hasn’t stopped because of the pandemic, but it has changed. Here's how.

See photosArrow28 mins ago - Health

World coronavirus updates: Global death toll surpasses 34,000

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 now killed more than 34,000 people and infected over 723,000 others globally, per Johns Hopkins data. Italy reported more than 10,700 deaths early Monday.

The big picture: Governments around the world have stepped up public health and economic measures to stop the spread of the virus and soften the financial impact. In the U.S., now the site of the largest outbreak in the world, President Trump said Sunday that his administration will extend its "15 Days to Slow the Spread" guidelines until April 30,

Go deeperArrowUpdated 3 hours ago - Health

Coronavirus dashboard

Illustration: Sarah Grillo/Axios

  1. Global: Total confirmed cases as of 1 a.m. ET: 722,435 — Total deaths: 33,997 — Total recoveries: 151,991.
  2. U.S.: Leads the world in cases. Total confirmed cases as of 1 a.m.. ET: 142,502 — Total deaths: 2,506 — Total recoveries: 4,856.
  3. Federal government latest: President Trump says his administration will extend its "15 Days to Slow the Spread" guidelines until April 30.
  4. Public health updates: Fauci says 100,000 to 200,000 Americans could die from virus.
  5. State updates: Louisiana governor says state is on track to exceed ventilator capacity by end of this week — Cuomo says Trump's mandatory quarantine comments "panicked" some people into fleeing New York
  6. World updates: Italy on Sunday reports 756 new deaths, bringing its total 10,779. Spain reports almost 840 dead, another new daily record that bring its total to over 6,500.
  7. What should I do? Answers about the virus from Axios expertsWhat to know about social distancingQ&A: Minimizing your coronavirus risk
  8. Other resources: CDC on how to avoid the virus, what to do if you get it.

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