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WeWork Opens First Location in Taiwan After Softbank Bailout

By Ding Yi / Dec 20, 2019 05:20 PM / Business & Tech

Photo: VCG

Photo: VCG

U.S. office-sharing firm WeWork has opened its first location in Taiwan after securing a multi-billion-dollar rescue package from Japan’s Softbank.

The new building, located in the capital of Taiwan’s financial and business center, was among 52 buildings established around the world in December, when WeWork set a monthly record for new building openings, according to a company statement.

The location in Taiwan’s capital of Taipei has already started accommodating companies of all sizes, WeWork said.

The foray into Taiwan comes after troubled WeWork snagged a $9.5 billion bailout from Softbank in an October deal that empowered the Japanese conglomerate to take 80% control of the company. In September, the office-sharing startup withdrew its IPO after its prospectus raised doubts about its financials and corporate governance.

In the statement publicizing its push into Taiwan, WeWork claimed that it would shift focus to a more asset-light business model that it expects will improve its long-term financial status.

It has also been rumored that WeWork will shelve its expansion plans for China, where 15% of its global facilities are located. A Nikkei Asian Review report, citing people with knowledge of WeWork’s operations, said the company has postponed its China expansion plan slated for 2021.

Contact reporter Ding Yi (yiding@caixin.com)

Related: Reaffirming China Commitments, WeWork Stays Silent on Future Growth Plans After Massive Devaluation

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