This IIT-JEE topper, who donated Rs 75 crore to IIT Delhi, is now majority stakeholder of WeWork

This IIT-JEE topper, who donated Rs 75 crore to IIT Delhi, has now become the majority stakeholder of the bankrupt WeWork.

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

Who will be the CEO of WeWork?

While Yardi will become the majority owner of the business, WeWork will continue to operate as a separate entity. Currently, David Tolley is still the CEO of WeWork.

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

Who is Anant Yardi?

Yardi is a low-profile yet highly successful entrepreneur who 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.

He holds a BTech degree from the Indian Institute of Technology (IIT) Delhi and an MS in Engineering from the University of California at Berkeley.

Notably, Yardi donated Rs 75 crore to the School of Artificial Intelligence at IIT Delhi in 2021.

In 1968, he moved to the United States and founded Yardi Systems in 1984, a company specializing in property management software.

Before founding his company, Yardi worked at Burroughs Corporation for 14 years, where he developed programming methodologies and directed systems development.

In 1984, he developed "Basic Property Management" for the Apple II computer and founded Yardi Systems. He has been the company's President and CEO for 35 years.

Anant Yardi's investment in WeWork

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 Systems’ relationship with WeWork began in 2022 on a project involving data analytics and office management.

By early 2023, WeWork approached Yardi regarding its debts, leading to Yardi Systems purchasing $175 million in secured notes and arranging the purchase of $40 million in shares through a legal entity, later revealed to be Yardi himself.

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, He remains optimistic about WeWork's future.

"If there were doubts, I think we would've been much more cautious," he said.

US-Court approved WeWork's Chapter 11 bankruptcy plan

Earlier this week, a U.S. bankruptcy judge approved WeWork's Chapter 11 bankruptcy plan, allowing the shared office space provider to eliminate $4 billion in debt and hand the company's equity over to a group of lenders and real estate technology company Yardi Systems.

U.S. Bankruptcy Judge John Sherwood approved the company's restructuring at a court hearing in Newark, New Jersey.

With that approval, WeWork will be ready to exit bankruptcy with no debt "in a matter of days," WeWork attorney Steven Serajeddini said at the hearing.

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.

Notably, this will help the company to save over $12 billion in future rent expenses.

Post-bankruptcy, It 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 offered by its co-founder and ex-CEO Adam Neumann.

The company said Neumann did not offer a high enough price to win over WeWork's lenders, who preferred to take an equity stake as part of the bankruptcy deal.