WeWork Cos. Inc. parent The We Co. sold Conductor LLC to the current leadership, employees and strategic investors of the search engine optimization and content marketing technology company.
More than 250 employees of the company, which will operate independently, will serve as co-founders and will each receive a new class of stock called founder-preferred shares, and will hold a majority ownership stake in the business.
Conductor CEO and co-founder Seth Besmertnik and COO Selina Eizik provided financing for the transaction, together with The Finger Group Managing Partner Jason Finger, who will join the company's board.
Separately, San Francisco-based workplace management startup Eden made a bid to acquire rival Managed by Q Inc. from WeWork, The Real Deal reported, citing people familiar with the matter.
Dan Teran, co-founder and former chairman of the target company, also made a bid to buy back the business it sold earlier in 2019 to the coworking giant for $220 million, the report added.
Negotiations among WeWork and the two suitors have stopped since the potential buyers submitted their offers a few months ago, the sources said.
The news outlet could not get a comment on the matter from WeWork, Eden or Teran.