WeWork agrees to go public via $9 billion SPAC deal
A man walks out of a WeWork space in the Manhattan borough of New York City, New York, Oct. 4, 2019, file photo. Reuters-Yonhap
WeWork has agreed to go public through a merger with blank-check firm BowX Acquisition Corp that values the office-sharing startup at $9 billion including debt, the Wall Street Journal reported on Friday, citing people familiar with the matter.
The company disclosed to prospective investors it had lost about $3.2 billion last year as part of a pitch for a stock market listing by merging with a special purpose acquisition company (SPAC), sources told Reuters earlier this week.
The office-sharing startup's plans for its high-profile initial public offering imploded in October 2019 due to investor concerns over its business model and its founder Adam Neumann's management style.
The company is also raising $1.3 billion in capital, including $800 million in private investment from Insight Partners, funds managed by Starwood Capital Group, Fidelity Management and others,
.
WeWork did not immediately respond to a Reuters request for comment.
A SPAC is a shell firm that uses proceeds from an IPO to buy a private firm.
WeWork was valued at nearly $47 billion in 2019 but saw its valuation plummet to roughly $8 billion after SoftBank was forced to extend a life-saving financing lifeline to WeWork.
BowX Acquisition raised $420 million in its IPO in August last year. (Reuters)