Ukrainian Rentberry is preparing to buy bankrupt WeWork for $550-650 million
Ukrainian startup Rentberry is in the process of acquiring the WeWork brand, valuing its business in the range of $550 to $650 million after a thorough due diligence.
Future deal
Merger of perspectives
The Ukrainian-founded company Rentberry has started the process of taking over the bankrupt co-working giant WeWork. The preliminary estimate of the value of 100% of the WeWork business is between $550 million and $650 million, but the final amount will be determined after a comprehensive review. Rentberry informed AIN.UA about its intentions.
The buyer will be either Rentberry itself or their subsidiary structure created specifically for the implementation of this transaction. In addition to own capital, the company will attract funds from partner venture capital funds. It is important that the new owner will not assume the debt obligations of WeWork and will not receive its liquid assets.
Due Diligence
Rentberry's statement states: "According to our preliminary estimates, the company (WeWork) will have an adequate level of working capital at the time of closing. There will be no no material liabilities other than those reflected in the annual financial statements or incurred in the ordinary course of business since the date of the last annual statement."
Rentberry is ready to immediately begin a comprehensive review covering commercial, accounting, tax, legal, insurance, operational, human resources, financial and other aspects, as well as issues related to real estate. Once the review is complete, a deal can take place. It is expected that the process of verification and preparation of documentation will last about 60 days.
Combining concepts
Rentberry announced plans to acquire WeWork in February 2023, and the decision was backed by key investors, including Berkeley Hills Capital. It is about combining WeWork co-working spaces with the concept of flexible living offered by Rentberry.
The WeWork company, known for its network of co-working spaces and offices, announced bankruptcy in November 2023. Before that, it was considered one of the most successful "unicorns", reaching an incredible valuation of $47 billion. However, after management and alcohol scandals surrounding former CEO Adam Newman, the company's shares fell by approximately 96%.
Glossary
- WeWork is a global network of coworking and office spaces, founded in 2010.
- Rentberry is a startup based in Ukraine that develops innovative solutions for real estate rental and management.
- Berkeley Hills Capital is a venture fund that invests in high-tech companies at various stages of development.
- Adam Newman is the former CEO and founder of WeWork, known for his eccentric leadership.
Links
- AIN.UA is an information portal about news of startups and technologies in Ukraine.
Answers to questions
What is Rentberry and what does this company do?
How much does Rentberry plan to buy WeWork for?
What assets and liabilities are included in the WeWork acquisition agreement?
What does Rentberry's planned WeWork due diligence involve?
What plans does Rentberry have for integrating WeWork into its business?
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Discussion of the topic – Ukrainian Rentberry is preparing to buy bankrupt WeWork for $550-650 million
Rentberry, a startup founded by Ukrainians, is in the process of acquiring the bankrupt company WeWork, valuing it at $550-650 million. The exact amount will be known after verification.
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Петро
Interesting news about the acquisition of the former giant WeWork by Ukrainian Rentberry 👀 It will be cool if they combine the concept of flexible living with coworking and give a new start to the business! 🚀
Анна
Yes, it can be an impetus for new ideas and approaches in the field of co-working spaces. I wonder if they will keep the WeWork brand or offer something new? 🤔
Джон
In my opinion, this is a good opportunity for Rentberry to enter the international market and show its strength. It will be interesting to watch their steps! 🌍
Софія
I am a little worried about the amount of the deal - $550-650 million looks quite modest for such a large company as WeWork. I wonder why they agreed to such a price? 🤨
Олег
Well of course! This is a good price for Rentberry 😏 I suppose that the problems of WeWork and the scandals surrounding its CEO played a role. And the Ukrainians managed to see the potential and prospects!
Василь
These new trends with co-working spaces and flexible living are just nonsense! 😡 Who even believes in this? Only the long-awaited loss of money and time. Stay at home and work as before!
Марія
Wow, Vasyl, you are too categorical! 🙅♀️ Coworking spaces are a great opportunity for creative people to exchange ideas and stimulate each other. And Rentberry will show how it can work in practice!
Ігор
The main thing is that everything is professional and at the proper level. Both companies can benefit from each other's experience - WeWork with its network, and Rentberry with new concepts. It can be a win-win! 🤝