Managed by Q co-founder Dan Teran was in talks to buy his company back from WeWork — which the office-sharing firm acquired in April 2019 — but those talks have apparently fallen apart, Bloomberg reported on Friday (Feb. 28), citing sources familiar with the matter.
Teran and investors had been looking to purchase Managed by Q — which offers business management technology — for less than $55 million. WeWork reportedly paid $220 million for Managed by Q last year.
The startup was going to be sold off to competitor Eden Technologies, two sources familiar with the matter said. But the final purchase price ended up being higher than Teran and his investors wanted to pay, said one of the sources.
Since its failed attempt at an initial public offering (IPO) in September, WeWork has been unloading acquisitions, even if it meant giving big discounts. WeWork’s new leadership is reducing expenses as it re-focuses on its central business of office sharing. Layoffs are also in the works, with 2,400 job cuts planned.
WeWork sold off its investment in the women-focused co-working space The Wing and also got rid of the office space technology firm Teem. The company also sold the marketing software startup Conductor that it had acquired in 2018, back to its founder and his own investor group in December 2019.
Co-founder Adam Neumann, who stepped down as chief executive officer (CEO) in September, is said to be liquidating some assets, including his piece of a real estate development in San Jose, California.
Managed by Q was part of a “spending spree” by Neumann, Bloomberg reported in December. Neumann had been hoping to diversify the co-working business until everything imploded around the time of the failed IPO.
In February, WeWork named industry veteran Sandeep Manthrani as its new CEO. Manthrani will join on February 18th and will report to Executive Chairman Marcelo Claure.
Manthrani was previously an executive at Vornado Realty Trust and was also the former CEO of Brookfield Properties’ retail group.