WeWork or The We Company has agreed to acquire Spacious, the coworking outfit that offers space in restaurants during the day. Terms of the transaction were not disclosed but the Information has reported that the transaction was worth $42M; half in stock and half in cash. “In WeWork, we have found much natural alignment across our visions for the integration of work, technology, and physical space. We’re thrilled for the opportunity to continue to serve our members at Spacious today as part of the greater WeWork community,” remarked Preston Presek, Cofounder and CEO of Spacious.
In WeWork, we have found much natural alignment across our visions for the integration of work, technology, and physical space. We’re thrilled for the opportunity to continue to serve our members at Spacious today as part of the greater WeWork community – Preston Presek
Founded by Chris Smothers and Presek in 2016, Spacious had raised a total of $9.1M in reported equity funding with a single round in 2018. Backers in the company include Redpoint, Lerer Hippeau, BoxGroup, August Capital, Baseline Ventures, and MetaProp NYC.
The timing of this transaction brings doubt to the $42M figure reported by the Information as WeWork is it in its quiet period after its S1 filing for its imminent IPO. If this transaction has any impact on Wework’s earnings potential, the company would be required to re-file its S1 to provide added visibility to potential investors and shareholders. Coupled with the fact that Spacious shuttered its entire San Francisco presence earlier this year due to “regulatory issues” after already having been in SF for two years and the fact that company has only thirteen locations in NYC, its home market, after three years, the transaction value may have been significantly lower. Thirteen locations are extremely unlikely to justify a $42M valuation unless WeWork grossly overpaid. No word on if Spacious will continue to operate under its own brand. In a past acquisition for WeWork of Managed by Q, WeWork was explicitly clear in its intent that Managed by Q will operate as an independent business.
“Spacious’s team and real estate and operational expertise will help enable WeWork to continue to give our members access to the workspace they want, when they need it,” says WeWork chief product officer Chris Hill. This is WeWork’s eighteenth acquisition. The NYC-based company founded in 2010 by Neumann and Miguel McKelvey had previously acquired NYC startups Meetup, Flatiron, Fieldlens, Managed by Q, and Conductor.