WeWork has inked a blank-check deal to go public, less than two years after its now-infamous failed bid for a traditional IPO led to a downward spiral at the SoftBank-backed company.
- The SPAC deal with BowX Acquisition values WeWork at $9 billion, a precipitous drop from the $47 billion valuation it received in 2019 prior to its attempted IPO. SoftBank, the company's largest shareholder, disclosed last May that WeWork was worth $2.9 billion.
- WeWork expects to get $1.3 billion in cash from the deal. That includes an $800 million PIPE round from investors including Insight Partners, Starwood Capital Group, Fidelity Management & Research, Centaurus Capital and BlackRock.
- The co-working company's overhaul in 2020 included cutting 67% of its staff and reducing selling, general and administrative expenses by $1.1 billion. WeWork's 2020 revenue remained roughly the same year-over-year at $3.2 billion, excluding the company's Chinese operations, which WeWork sold control of last September. The company lost $3.2 billion in 2020.
- WeWork thinks its flexible space model will flourish as offices look to reopen, despite a humbling year for co-working companies. Since the pandemic began, rival startup Knotel filed for bankruptcy before selling to Newmark, female-focused shared office provider The Wing sold to IWG, and many other co-working operators retreated or shut down.