Anant Yardi becomes majority stake owner of WeWork, David Tolley to continue as CEO

Anant Yardi, an Indian-born software tycoon, has acquired majority stake in WeWork on May 30, following a federal bankruptcy court's decision to transfer control of the co-working giant to its creditors. 

“While Yardi will become the majority owner of the business and is CEO of Yardi Systems, WeWork will be operated separately. Currently, David Tolley is still CEO of WeWork,” said a Yardi Systems spokesperson.

However, “There has been no announcement yet who the management team will be once WeWork emerges from bankruptcy, which is set to happen in a few weeks,” the spokesperson added.

Who is Anant Yardi?

Yardi, a low-profile yet highly successful entrepreneur, ranks among the wealthiest in the software industry. His journey began in 1963 when he became the second person to achieve the top rank in the IIT JEE, a prestigious engineering entrance exam in India. 

Yardi moved to the United States in 1968 and founded Yardi Systems in 1984, a company specializing in property management software. Today, Yardi Systems generates nearly $3 billion in annual revenue, making him a billionaire.

The company declined to comment on future plans.

According to the Financial Times, Yardi invested over $200 million in WeWork less than two years ago through an anonymous vehicle. Recently, he committed an additional $337.5 million to counter a bid from former WeWork CEO Adam Neumann, who attempted to regain control of the company.

Yardi's Vision for WeWork

Yardi plans to steer WeWork towards targeting small businesses and incorporating hotel-like technologies like real-time bookings. Despite the company's recent struggles, Yardi remains optimistic about its future. "If there were doubts, I think we would've been much more cautious," he said.

Meanwhile, US Bankruptcy Judge John Sherwood approved WeWork's Chapter 11 bankruptcy plan on May 30. This approval allows the beleaguered shared office space provider to eliminate $4 billion in debt and transfer the company's equity to a group of lenders and the real estate technology company, Yardi Systems, as per Reuters.

During the Newark, New Jersey court hearing, WeWork attorney Steven Serajeddini confirmed that the company is poised to emerge from bankruptcy debt-free "in a matter of days." This marks a critical juncture for WeWork, which has faced steep losses and overextension in its real estate portfolio, leading to its bankruptcy filing in November 2023.

The bankruptcy proceedings enabled WeWork to negotiate a substantial reduction in future rent costs from its landlords and cancel leases at about one-third of its locations. This strategy will save the company over $12 billion in future rent expenses. Post-bankruptcy, WeWork plans to operate 337 shared office spaces, with more than 170 locations in the U.S. and Canada.

During the restructuring process, WeWork rejected an alternate buyout proposal from its co-founder and former CEO, Adam Neumann. The company's lenders favoured an equity stake over Neumann's offer, which was deemed insufficient.