WeWork to go public, valued at $9 bil
27 March, 2021
WeWork announced Friday it plans to enter public markets through a merger transaction that raises $1.3 billion for the office-sharing firm.
The move comes two years following the former high-flying office-sharing company went right into a spectacular tailspin that resulted in the cancelling of a planned public share offering and a bailout by Japanese investment firm SoftBank.
The transaction with BowX Acquisition Corp is the latest instance when a prominent company eschews a normal initial public offering and only combining with an entity like BowX that is especially established by investors for such a merger.
The approach of merging with a so-called "special purpose acquisition company" or SPAC follows a recent trend that streamlines the procedure of a public listing.
WeWork was presented with an enterprise value of $9 billion in the transaction.
Once a dazzling "unicorn" valued at $47 billion, WeWork started to unravel as the firm lost cash and canceled a well planned 2019 share offering, with the ex-CEO pushed out -- albeit with a generous package.
WeWork executives said the company is poised to thrive found in the post-pandemic economy.
"SoftBank has always found the potential found in WeWork's core business to disrupt the commercial real estate business and reimagine the workplace. Today, we have another step towards producing that vision a reality," explained Marcelo Claure, the SoftBank CEO and executive chairman of WeWork.
"The pandemic possesses fundamentally changed just how we work, and WeWork is incredibly well positioned to springboard into a future propelled by digital technology and a fresh appreciation of the worthiness of flexible workspace."
The transaction will be funded with BowX's $483 million of cash and $800 million from other investors led by Insight Partners, Starwood Capital Group, Fidelity Management & Research Company, Centaurus Capital and BlackRock.
Source: japantoday.com
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