Jan 22, 2020

WeWork sells minority stake in The Wing

Photo: Alex Tai/SOPA Images/LightRocket via Getty Images

WeWork said that it has sold its minority stake in women co-working space operator The Wing to a group of new and existing investors, including Google Ventures. No terms were disclosed.

Why it matters: This is a reminder that WeWork isn't just a cautionary tale to be shoehorned into every scattered critique of the venture capital and startup ecosystem. It's still a commercial real estate giant that's trying to right the ship by refocusing on its core, slower-growth business.

  • Other investors in today's deal include actress Mindy Kaling and existing Wing backers NEA and Sequoia Capital.

Flashback: WeWork and The Wing originally discussed a deal in mid-2017 whereby The Wing's two co-founders would each receive $250k "advisor cash awards," $10 million in secondary sales, and $1 million in new shares. After that term sheet got leaked by disgruntled Wing shareholders, the final deal became smaller ($32m total) and much more vanilla.

The bottom line: WeWork expects to get more runway within the "coming weeks," when it's able to access a new $1.75 billion, zero-cash collateral credit facility from Goldman Sachs, as part of last fall's SoftBank-led bailout.

Go deeper: Why firing the CEO of a company doesn't change anything

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WeWork names real estate veteran Sandeep Mathrani as new CEO

Photo: Alex Tai/SOPA Images/LightRocket via Getty Images

WeWork has named real-estate-industry veteran Sandeep Mathrani as its new CEO, the Wall Street Journal reports.

Why it matters: The hire is the company's first significant step since its co-founder Adam Neumann stepped down from the position last September.

SoftBank executive muddles details of ousted WeWork CEO's exit package

Former WeWork CEO Adam Neumann. Photo: Michael Kovac/Getty Images for WeWork

Marcelo Claure, a SoftBank executive who's currently doubling as WeWork's executive chairman, told CNBC on Tuesday that people misunderstand ousted CEO Adam Neumann's exit package: "To say that he has walked away with over a billion dollars is totally false."

Why it matters: Claure intentionally muddled the present and past tense. Neumann indeed will walk away with over $1 billion, he just hasn't done so yet because SoftBank's tender offer for WeWork shares hasn't closed. Neumann, currently living in Israel, is able to tender up to $970 million worth of shares. That's on top of the nearly $200 million he already received to give up his voting rights, and a $500 million credit line to repay existing loans.

Go deeper: WeWork's Adam Neumann to step down as CEO

Online dollar store Hollar to wind down

Illustration: Eniola Odetunde/Axios

Hollar, an e-commerce company that raised more than $75 million in VC funding, is expected to wind down soon, Axios has learned from multiple sources.

Between the lines: It's been a very tough month for direct-to-consumer startups, beginning with Casper Sleep's uninspired IPO and Monday's shutdown of SoftBank-backed Brandless.