WeWork will buy one a competitor located in China following its release of confirmation it would buy Naked Hub. The deal has already been reported widely by media in China but now WeWork has confirmed it through a post on its blog by CEO Adam Neumann.
The terms of the deal were not released by either party but it was been reported to be as high as $400 million.
Naked Hub is a subsidiary of Naked Group the luxury resort business based in China that in 2015 was started by Grant Horsfield with Delphine Yip-Horsfield
The business for the most part is in China, with the majority of its locations in Shanghai and Beijing. However, it expanded into Australia, Vietnam and Hong Kong. In all, it says in its 24 offices it has more than 10,000 members.
Even though the deal of merging with JustCo, based in Singapore fell through, Naked Hub emerged as the fiercest competitors of WeWork in China with ambitions of continuing to battle across Southeast Asia as well as other markets.
WeWork has not commented to date about how it will integrate the brands, but CEO Neumann gave praise to Naked Hub.
He said that WeWork has found its equal, who shares the same thinking about importance of space, design, community, technology and culture. Together, he believes the two companies will produce a profound impact through helping companies grow, scale, as well as succeed across China.
Founder of Naked Group and its chairman said Naked Hub, born in China, and WeWork might come from backgrounds that are vastly different, but more exists between the two to bind them that does to separate them. The values shared toward the creation of a vibrant community of members through using design, hospitality and technology are core to why both businesses are so successful.
Naked Hub might be an increased threat to the WeWork China unit, but it is not the only one. Unicorn Ucommune is perhaps the biggest challenger of high profile in China.
In 2016 in China WeWork was launched in Shanghai. Today it has 13 locations across Greater China and is planning to increase that total to over 40 by the end of 2018.
That move would quadruple the number of its members in China to 40,000 from 10,000.
This is the second acquisition by WeWork of one of its competitors in Asia. It acquired SpaceMob last year in Singapore.