(Yicai Global) April 26 -- WeWork, the world’s biggest co-working space operator, has acquired Shanghai-based rival Naked Hub in a deal reportedly worth USD400 million.
New York-based WeWork, which rents trendy workspaces to startups and freelancers, will gain 10,000 new members across 24 locations mainly in China and Southeast Asia following the completion of the deal.
Naked Hub will continue to operate as an independent brand at least until the end of the year. The acquisition is part of the company’s plans to gain a stronger foothold in the crowded Chinese coworking space market, which is expected to be worth almost nine and half billion dollars next year.
Competition is fierce in the Chinese market with local players such as Shanghai-based People Squared and Beijing unicorn U-Commune performing well.
According to some industry insiders, the WeWork deal may be a catalyst for greater consolidation in the Chinese coworking sector with only those companies with considerable financial clout and distinctive product offering left standing.