Markets are up and down, here's what you can do next
Tensions are high, markets are up and down, here's what you can do next

WeWork Acquires Common Desk to Strengthen Flexible Work Space Footprint

WeWork (WE) has reached an agreement to acquire Texas-based flexible workspace provider Common Desk. The transaction is still subject to customary closing conditions and is expected to close in March. WE shares rose 2.26% to close at $8.16 on January 25.

Founded in 2010, WeWork creates remote environments that allow people and companies to work together. It is one of the leading flexible space providers. WeWork’s upcoming earnings report for Fiscal Q1 2022 is scheduled for May 19, 2022.

Merger Agreement

Once the transaction closes, Common Desk will become a WeWork company but will still operate as ‘Common Desk.’  The acquisition underscores WeWork’s cost-efficient strategic growth plan. It is also expected to strengthen its footprint in the flexible workspace market, with Common Desk already serving 4,000 customers.

WeWork expects the transaction to strengthen its value proposition, while Common Desk is banking on the merger to improve the experience of its members. It plans to leverage WeWork’s client roster to strengthen its member base.

Common Desk will join WeWork, having established itself as a premier flex-space provider. The two intend to work together by creating meaningful communities through member-focused hospitality. The acquisition should also allow both brands to expand their operations to new markets.

Stock Rating

Consensus among analysts is a Moderate Buy based on 1 Buy recommendation from Deutsche Bank analyst Andreas Neubauer.

Download the TipRanks mobile app now

To find good ideas for stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights.

Read full Disclaimer & Disclosure.

Related News:
Galiano Gold Announces Results for Asanko Gold Mine
Fire & Flower Closes Pineapple Express Acquisition
Scotiabank Implements New Global Standard for Parental Leave