WeWork Buys China Co-Working Rival naked Hub for $400 Million
This just in: WeWork, the world's largest co-working
firm, has reportedly acquired China-based rival naked Hub in a deal said
to be worth around USD400 million (RMB2.5 billion).
Bloomberg
reports that the merger is part of the US-based company's ambitious plan
to dominate the hot Middle Kingdom co-working space market.
Since
debuting in China in 2016, WeWork has opened 13 offices across
Shanghai, Beijing and Hong Kong, adding over 10,000 members along the
way. This year, more locations are set to open in Shenzhen, Suzhou,
Hangzhou, Chengdu, Nanjing and Wuhan.
WeWork Yan'an Lu (Shanghai), image via WeWork
But
despite its success in the American market, WeWork has faced some
pretty tough competition in China. Along with naked Hub, WeWork has
battled with Ucommune — the startup formerly known as "UrWork" — for its
piece of the co-working pie.
First hitting the scene in 2015,
naked Hub — part of the Shanghai-based luxury hospitality company the
naked Group — has opened 20 locations in Shanghai and Beijing (including
Asia's largest co-working place), as well as an additonal 46 spaces
around Asia (in places like Hong Kong, Vietnam and Australia), according
to TechNode. It also boasts more than 10,000 members and was said to be
launching another 30 locations in the near future. According to
Reuters, the naked Group has a lofty target of 200 locations by 2020.
As
China Money Network notes, today's deal appears to signal the start of
"intensifying mergers" and an "acquisition war" in China's cutthroat
co-working industry.
[Top image via naked Hub]
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