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NEW YORK CITY – WeWork went from one of the world’s fastest-growing start-ups to bankruptcy almost overnight as the co-working firm flicked its blinkers to change lanes to the public market through its flopped initial public offering. As the company’s reputation slow burns, tech subsidiaries of the firm are aiming to buy themselves back or find new investors, highlighting how investors value profitability over scalability in the proptech sector.

Over the past two years, WeWork spent more than $500 million on tech-related companies with board approval and had acquired between 14 to 20 companies in total. Former CEO Adam Neumann, who later stepped down amid board pressure for shaky corporate governance, had been on a freewheeling spending binge, acquiring companies and other luxuries in excess, according to the firm’s IPO prospectus.

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Mariah Brown

Mariah Brown is the New York Bureau Chief and Real Estate Reporter for GlobeSt.com, covering the New York Metro area, Northeast region and national real estate trends. She is responsible for producing multi-media content, including articles, podcasts and video. Before joining the GlobeSt team, she served as a New York Times fellow, reported for the Associated Press in New York and Philadelphia and several other New York City-based outlets.

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