WeWork, a real estate startup that also provides co-working space to other startups, has made a very unique acquisition: a school.
WeWork is known for leasing out buildings and renting office space to tech companies and entrepreneurs. Today, the company is valued at $20 billion and is growing beyond its current forte of real estate and getting into education.
The company recently acquired New York City-based Flatiron School, which was founded in 2012 as a coding education program. The school provides courses in mobile and web development at its physical in Manhattan and also online. The classes cost between $12,000 and $15,000.
This move by WeWork will enable them to provide a bundle of services to professionals. In 2016, they expanded their housing-market business by starting the venture WeLive. WeLive was created to provide apartment complexes that look like dormitories. This concept is doing well in New York and Washington, D.C.
Recently, WeWork announced a “wellness facility” in New York City. The facility, named Rise, houses fitness classes and a spa. This is a spinoff from its in-house wellness facility, and now anyone can access the gym.
Speaking on this new acquisition, CEO Adam Neumann wrote in a blog post that all employees and members of WeWork will have access to the coding academy.
Flatiron claims that students graduating from the academy will receive high salaries. However, it was accused of improperly marketing its job placement scenario and operating without a license. It underwent a settlement of $375,000 with New York regulators.
To date, WeWork has raised funding worth $10 billion, with a recent investment coming from Japanese firm SoftBank, which invested $4.4 billion.
The details about the Flatiron acquisition have not been disclosed, and we are waiting for an official statement from a WeWork representative.