WeWork has decided to close the restaurant coworking enterprise Spacious, after owning it for only 16 weeks. This is the most recent sign that the vexed company has decided on a strategy of offloading some of its various side businesses that it was so eager to embrace during the past few years.
Complicating matters even more is the fact that two months ago an anonymous whistleblower initiated a complaint concerning the original acquisition by WeWorks of Spacious at the United States Securities & Exchange Commission. The complaint alleges that some executives forced the agreement through the board of directors without bothering to do proper outside research into the acquisition’s financial condition. Public documents show that the company was bought by WeWork for just over 42 million dollars.
Other companies acquired by WeWork that are experiencing difficulties include the content and SEO startup Conductor; its own employees are buying back the company from WeWork. Technology startup Managed by Q is alleged to be up for sale right now by WeWork, at fire sale prices. Their social network Meetup, which has proven a popular website for Millennials to share mutual interests like hobbies and art, is experiencing massive layoffs and restructuring — it, too, is alleged to be for sale.