WeWork is selling a majority stake in its China business as the co-working giant continues to pare down its expenses, the company said Wednesday.
Trustbridge Partners, an existing investor in WeWork’s China subsidiary, has invested an additional US$200 million ($273.7 million) and now owns more than half of the business, WeWork said. WeWork parent We Co. is giving up operating control of the unit, but will continue to get an annual service fee in exchange for the use of the WeWork brand and services, the company said.
WeWork opened its first Chinese location, in Shanghai, in 2016, and now operates more than 100 locations in 12 cities. Michael Jiang, an operating partner at Trustbridge, was named the acting chief executive officer of WeWork China, the company said in a statement.