WeWork Rival IWG Mulls Spinoff for U.S. Business, Sky Says
WeWork Rival IWG Mulls Spinoff for U.S. Business, Sky Says
(Bloomberg) -- The founder of IWG Plc is planning to spin off the firm’s U.S. business into a separately listed company in New York, Sky News reported, citing people familiar with the matter.
IWG Chief Executive Officer Mark Dixon is in talks with investment banks about creating a standalone business to rival WeWork Cos., the London-based broadcaster said on its website. Sky said that IWG’s U.S. operations could be worth as much as $3.7 billion. IWG generated about 41% of its $3.4 billion of revenue in the Americas last year, according to data compiled by Bloomberg.
IWG, which is the world’s largest shared office provider and owns multiple office brands including Regus, is bigger than WeWork in terms of space. The firm has almost 60 million square feet (5.6 million square meters) globally, while WeWork had 45 million square feet as of March. WeWork’s largest backer SoftBank Group Corp. has valued the New York-based firm at $47 billion, far in excess of IWG’s market capitalization, and its planned initial share sale may be among the year’s biggest.
The company, which is based in Switzerland but listed in the U.K., had a market value equivalent to $4.5 billion at the close of trading Friday. Dixon said earlier this month that WeWork’s high profile has helped boost revenue growth at IWG’s U.S. business.
“That’s a market that’s deemed to be very competitive,” Dixon said. “It is the home of WeWork, so by WeWork and others talking more in the market, it generates more business for us.”
Other highlights from Sky News:
- Discussions at an early stage, there are a number of options being considered, and no banks have been formally appointed.
- IWG declined to comment to Sky.
- IWG is seeking banks that have no role in WeWork IPO.
To contact the reporters on this story: Kelly Gilblom in London at kgilblom@bloomberg.net;Will Hadfield in London at whadfield@bloomberg.net
To contact the editors responsible for this story: James Herron at jherron9@bloomberg.net, Nick Rigillo, Andrew Davis
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