January 22, 2020 / 2:50 PM / a month ago

WeWork offloads non-core business Teem, stake in The Wing

FILE PHOTO: A WeWork logo is seen at a WeWork office in San Francisco, California, U.S. September 30, 2019. REUTERS/Kate Munsch -/File Photo

(Reuters) - Shared workplace operator WeWork said on Wednesday it sold cloud and analytics services provider Teem to digital workplace solutions provider iOFFICE, as it offloads non-core businesses after a botched initial public offering last year.

WeWork also sold a minority stake in The Wing, a community space provider designed for women, to a group of new investors including Google Ventures and American actress Mindy Kaling. Existing investor Sequioa Capital also participated.

The company did not reveal the financial terms of the transactions.

The money-losing office space operator is under pressure to cut costs after it pulled its IPO last year and recorded a steep plunge in valuation to less than $8 billion from $47 billion.

WeWork also said it was in the process of selling other non-core ventures such as Meetup and Managed by Q.

The company said it has wound down restaurant co-working startup Spacious and will shutter Manhattan-based private school WeGrow at the end of the 2020 school year. In December, WeWork sold Conductor, a content marketing technology company.

WeWork secured a $1.75 billion credit line with Goldman Sachs (GS.N) in December. The facility is expected to be available within the coming weeks, the company said.

However, a separate deal to secure $3 billion from Japan’s three biggest banks has stalled as the lenders have hit internal limits, complicating a $9.5 billion rescue package for WeWork, Reuters reported in December.

Reporting by Bharath Manjesh in Bengaluru; Editing by Aditya Soni

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