Update: WeWork Buys China Rival Naked Hub
After shared-workspace provider WeWork said it will acquire one of its China-based rivals, Naked Hub, its top Chinese rival Ucommune vowed to take its own action on mergers and acquisitions (M&A).
"We (Ucommune) foresee major moves on M&A front from our side in the near future," said founder and chairman Mao Daqing, in response to a WeWork purchase disclosed on Thursday.
WeWork co-founder and CEO Adam Neumann hinted at the deal in a blog post on Thursday, and the deal has been widely covered by both the Chinese and foreign media since Wednesday.
“We are joining forces with Naked Hub,” Neumann wrote. “We will have a profound impact in helping businesses across China grow, scale, and succeed.”
The financial details of the acquisition haven’t been disclosed, though the deal could be worth $400 million, Bloomberg reported, citing two people familiar with the matter.
WeWork’s acquisition of Naked Hub will help it increase its presence in China. Naked Hub, launched in 2015, has 26 locations in Shanghai, Beijing and Hong Kong.
The U.S. co-working-space giant entered the China market in 2016 and has been expanding its presence vigorously, with 16 locations in Beijing, Shanghai and Hong Kong. It plans to have 40 locations this year, according to Neumann.
WeWork scored a $500 million investment in July from SoftBank and Hony Capital to fund its expansion in China.
WeWork may have felt pressured by its largest China rival, Ucommune, previously known as UrWork, which has already acquired three smaller domestic shared-workspace operators — Hongtai New Space, Woo Space and Wedo Union — in just a year.
Ucommune, together with the smaller brands, operates more than 100 spaces in dozens of Chinese cities. It even stepped into WeWork’s turf in the U.S., setting up locations in New York City, Los Angeles and San Francisco.
In an attempt to stop its rival’s global expansion, WeWork filed a trademark lawsuit in the U.S. against UrWork, arguing the Chinese startup’s name was “confusingly similar.” UrWork subsequently changed its English name to Ucommune.
This story has been updated to add Ucommune's response to the deal.
Contact reporter Coco Feng (firstname.lastname@example.org)
Jul 23 08:14 PM
Jul 23 06:25 PM
Jul 23 02:46 PM
Jul 22 07:00 PM
Jul 22 05:51 PM
Jul 22 04:59 PM
Jul 21 06:36 PM
Jul 21 05:33 PM
Jul 21 03:48 PM
Jul 20 08:43 PM
Jul 20 07:06 PM
Jul 20 05:27 PM
Jul 20 05:15 PM
Jul 19 08:00 PM
Jul 19 06:35 PM
- 1Japan Government Pension Fund Copycat Bucks Trend to Invest in China Debt
- 2Cover Story: The Rocky Path Facing Chinese Companies Tapping U.S. Markets
- 3Tsinghua Unigroup’s Bankruptcy Restructuring Sets Back China’s Chip Dreams
- 4China’s Steel Industry Braces for Curbs Under Forthcoming Carbon Neutrality Plan
- 5China’s Heavy Industry Faces Profit Pressures From EU Carbon Border Tax, Analysts Say
- 1Power To The People: Pintec Serves A Booming Consumer Class
- 2Largest hotel group in Europe accepts UnionPay
- 3UnionPay mobile QuickPass debuts in Hong Kong
- 4UnionPay International launches premium catering privilege U Dining Collection
- 5UnionPay International’s U Plan has covered over 1600 stores overseas