The story of WeWork (NYSE: WE) was one of the most astounding public trading palaver in recent history. What was expected to be a cultural revolution, a reinvention of traditional working structure, a melting pot of freelancers, startups and more, became one of the quickest demising company’s on the IPO hall of fame. The company had a great fundamental thesis, utilizing vacant global office spaces for a modernized, interactive approach to the workplace. What we found out from WeWork is that it sakes substantially more than vision and a high-end valuation for a company to succeed.
WeWork went almost bankrupt due to issues with letting and the dubious habits of its CEO, who later resigned, followed shortly by an acquisition from SoftBank. The company is still active however, but never really reached the status of workplace revolution that was once envisioned. Well now, the company is attempting to expand their offerings in a bid to regain trust and build on the foundations that were once so alluring.
Today, the ‘flexible space provider’ is partnering with Yardi, a leading provider in real estate software, to accelerate speed to market and deliver more enhanced capabilities to the WeWork Workplace product. This will create a universal platform for powering and optimizing flexible workplace strategies for companies of all sizes. The partnership hopes to capitalize on the pandemic-induced revolution for flexible, hybrid work models. The product is set to launch in July 2022.
Sure, WeWork had a rough ride. Direction didn’t quite align with its bold vision, and the structure of the original business failed to work as imagined. The story isn’t over yet though, today’s partnership with Yardi might not be a saving grace for the company on its own, but could pave the way for further software-oriented partnerships that might give WeWork the step up its needs after such a clouded reputation. WE stock has fallen around 53% in 2022, and I will be interested to see the company’s growth metrics in any forthcoming earnings report.
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Oliver is a financial writer and analyst specialising in the US stock market, with years of personal experience in understanding micro/macroeconomic structures, market trends and fundamental analysis.