WeWork has sold Meetup to VC firm Alley Group for a fraction of the amount Adam Neumann paid for the startup in 2017, according to Fortune. The social network provides a platform for people to organize in-person events.
- Flashback: The co-working giant paid a whopping $156 million for the company in 2017. Meetup was founded in 2002 and claims to operate in 193 countries around the world.
- Selling spree of failed acquisitions continues: Managed by Q, Flatiron School, Unomy, Spacemob, Fieldlens, and Welkio –– the list goes on and on.
- Why this matters: Most of the deals were outside of its core business of renting out work space. The company was seeking to justify an outlandish valuation as a transformational tech company, not a real estate one. The negligence on the part of WeWork and Softbank will be studied in business school for years to come.
- Losing tenants fast: The internal message board for the company’s subtenants is ridden with complaints about offices remaining open and customers continuing to be charged, despite more than half a dozen coronavirus outbreaks reported last week at WeWork’s Manhattan workspaces