Google snubs WeWork, signs lease with coworking rival

Google has walked away from a potential Toronto lease with WeWork after months of negotiations, agreeing to take space from rival co-working firm IWG Plc instead, according to people familiar with the matter.

Google signed a multiyear deal for about 24,000 square feet across two floors at IWG’s Spaces location in Royal Bank Plaza, in the heart of the city’s financial district, said the people, who asked not to be identified because the matter is private.

The tech giant had been in talks with WeWork to rent space in its planned location at 357 Bay St., the people said. It’s unclear why discussions for that site fell through. WeWork, the SoftBank-backed startup, has been reeling since it shelved an initial public offering and is seeking rescue financing before it runs out of cash as early as next month.