WeWork Inc. acquired Common Desk, making the first acquisition as a public company. The co-working startup spreads across 23 locations in Texas and North Carolina.
Common Desk promotes experiential coworking and office spaces. The flexible membership allows:
- Conference room bookings
- Community events
- Networking opportunities
- Tech equipment and Internet
- Virtual mailing
Following the pandemic, demand for flexible workplaces grew exponentially. However, WeWork’s shares have been 20% down since its October listing. And the company reached $5.7 billion market capitalization.
Last year, the co-working company entered the public markets. The first special-purpose acquisition is with Common Desk. The co-working startup runs 23 workplaces across Texas and North Carolina.
After the acquisition, Common Desk will keep its operations as an independent brand. However, 19 out of 23 locations operate thanks to management agreements. This solution is standard in the hotel industry. And it allows the company to run space and collect rent revenue shares. Companies don’t need to enter into a traditional longer-term lease with this arrangement. And WeWork aims to create more management agreements of this kind.
The acquisition of this co–working startup relates to WeWork’s business after Neumann-era acquisitions. Initially, investments targeted online coding schools and Meetup.com. However, the company sold them after Neumann left in 2019. If it’s hard to predict the company’s future, the co-working startup is a step to start a new chapter.
Image source: WeWork.com