The Wall Street Journal: WeWork in Talks with SoftBank to Double Valuation to as Much as $40 Billion

SoftBank Group Inc. is considering investing more in the shared workspace segment. According to The Wall Street Journal, the corporation is discussing a deal with WeWork that would value the shared-office company at $35 to $40 billion. That level of investment would double WeWork’s current $20 billion valuation.

WeWork has experienced drastic growth since its founding in 2010, proving that the co-working space industry is a strong one. The brand highlights how its concept — which is centered around leasing office space — can operate and be valued like a tech firm. And WeWork is far from the only brand operating in the co-working space. Brands like Office Evolution are also carving out their own unique niches in the segment.

Mark Hemmeter, Founder and CEO of Office Evolution, has found success by targeting suburban markets for growth and partnering with franchisees. He says that a possible deal between SoftBank and WeWork that has the potential to double the co-working space company’s valuation will be beneficial to the co-working space as a whole.

“I think it’s great for the industry. It brings additional awareness of how shared office space will be a leading way to work in the future,” said Hemmeter. He also notes that as the industry continues to evolve, Office Evolution will continue moving forward through the franchising business model. He added, “Through franchising we have seen the power of local ownership and how it reinforces our culture. Our members are mostly small business owners and that owner-to-owner relationship is very important. Our members do not want to office with big corporations; they want to office with other members of their community.”

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