WeWork sells Conductor to the company’s own executives
The aforementioned WeWork’s parent, The We Company’s notorious failed public offering and subsequent deposition of CEO Adam Neumann caused an indefinite delay of the IPO. But aside from this, WeWork was also reported to be considering the sale of subsidiary Meetup, run by Q and Conductor according to TechCrunch.
Given WeWork’s history and the aforementioned reports, it is understandable that Conductor is being acquired by the company’s own chief executive and co-founder Seth Besmertnik, in partnership with COO Selina Eizik and investor Jason Finger.
“We’re grateful for our time with WeWork, during which we’ve been able to invest aggressively in R&D, doubling the size of our team with world-class talent that helps our customers achieve success everyday,” Besmertnik said in a statement. “People don’t want to be advertised to or sold to anymore. Our solutions make it easier for brands to deliver marketing that is helpful and valuable. It’s marketing that consumers actually seek out.”
Conductor also announced that it will distribute so-called founder-preferred shares to its employees. These new shares will give the two hundred and fifty “employee co-founders” the power to assign a rep to the board of directors. This will, in turn, give the team a lot more say in where the company future will lie.
The restructure, according to Besmertnik, will increase the portion of the company that the employees will own by four-fold. Prior to the acquisition, the employees, Besmertnik included, owned less than ten percent of the company. Post-acquisition, the team will now hold a majority stake in the company when Besmertnik and Eizik’s shares are taken into account.
Although the economic aspects were not divulged, the firm says that it will be a completely separated from The We Company as a result of the acquisition.
“Our ownership model is going to really create an even more committed and even more passionate group of people as we apply that to our mission and vision,” he said.
Conductor originally helped advertisers streamline their sites for search, and as time went on, extended their business model to making advertising content as well. Since it was acquired, the firm has worked as a WeWork subsidiary. Now Conductor is doing business with over 400 companies, such as Slack and Visa.