WeWork to acquire Chinese rival Naked Hub for $400 million

With a funding round, led by SoftBank group, seeing WeWork’s valuation touch $17 billion, the tech startup was 2017’s hottest startups.

As per three sources familiar with the matter at hand, WeWork Co, an American firm that provides shared technology startup subculture communities, workspaces, and services for large enterprises, freelancers, entrepreneurs, startups and small businesses, plans on acquiring Naked Hub, its Chinese rival.

As per sources, the move, referred to internally as a merger, was announced to the Naked Hub staff on Thursday morning and is likely to be made public later today.

As per a Bloomberg report, WeWork has agreed to pay $400 million for the acquisition of the Shanghai-based firm.

Neither WeWork nor Naked Hub responded to requests for comment.

Sources have preferred the cover of anonymity since the details of the deal have yet to be made public.

Naked Hub has nearly 50 opened and planned locations across Hong Kong, China and Vietnam. As per its CEO, the firm plans on increasing its footprint in Asia by expanding its presence to 200 locations by 2020.

SoftBank Group Corp backed WeWork is one of the world’s hottest startups and received $4.4 billion in a funding round, in 2017, that saw its valuation touch nearly $17 billion.

In February 2018, WeWork, which leases office space and rents it out to small companies and individuals, stated it expects to double its membership to 400,000 in 2018 and expects to open 200 new office spaces around the globe this year.

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