WeWork CEO Sandeep Mathrani told CNBC on Tuesday that the company has paid its rent in over 80% of its locations in April and May. The co-working firm has spent heavily on its existing office spaces in preparation for the new way of working brought about the coronavirus pandemic.
- Be Smart: The former Brookfield executive said that WeWork has collected over 70% of rent from its tenants in April.
- On the tender offer: Mathrani said he’s not focused on WeWork co-founder Adam Neumann’s lawsuit against Japan’s SoftBank Group and its Vision Fund for terminating a $3 billion tender offer to the office-sharing startup’s shareholders: “The $3 billion tender offer has to do with existing shareholders. It’s noise in the background as far as I’m concerned. My focus is to right this ship.”
- Heard on the Street: Mathrani said that he spoke to Jeff Blau, CEO of Related Companies, about the crisis. Blau told told him that “the places you make a lot of money, you should pay your rent.”
- Turmoil in Neumann’s paradise: A special committee of WeWork board members filed a motion in Delaware on Monday to prevent it from being disbanded. The “status quo order” would preserve the committee’s authority pending the outcome of the legal case between WeWork and SoftBank. According to the special committee’s motion, the board of the We Company, WeWork’s parent, held a meeting on April 29 at which the company’s counsel recommended the appointment of two temporary board members who would form a new committee to adjudicate the existing special committee’s authority, Reuters reported.