By C Nivedita
(Reuters) - Content marketing technology company Conductor will seek fresh funding over the next few years, its chief executive officer told Reuters after spearheading a management-led buyout from The We Company on Thursday.
The deal follows the WeWork owner's decision to divest all non-core businesses after the scrapping of its much-anticipated listing plans in September and the ousting of founder and CEO Adam Neumann in October.
The buyout was funded by CEO Seth Besmertnik, chief operating officer and now co-founder Selina Eizik and former founder and CEO of online food ordering service Seamless, Jason Finger.
"When you combine my ownership, the COO's ownership and the people at the company, we own a large majority of the company. Before we sold the company we owned about 10% of the company," Besmertnik said.
The deal also makes 250 employees as co-founders, with each receiving preferred stock in the company.
Conductor, which also provides search engine optimization services, was bought by WeWork in March 2018.
"We were able to invest with significant amount of capital into the business, we grew our engineering, we grew our services, we opened up an office in the UK," Besmertnik said about the company's 21 months as a subsidiary of We Company.
A chance encounter at Conductor's office lobby in October 2016 between Neumann and Besmertnik led to WeWork becoming Conductor's customer, and later its owner.
Besmertnik said Conductor will go back to having a more traditional governance structure versus that at WeWork.
(Reporting by C Nivedita in Bengaluru; Additional reporting by Abhishek Manikandan; Editing by Sriraj Kalluvila)
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Updated Date: Dec 13, 2019 02:07:49 IST