WeWork Goes Public at $9 Billion Valuation with SPAC Merger
26th March 2021 | Hong Kong
WeWork, one of the world’s most recognisable and leader in flexible office space company based in New York, is going public at a $9 billion valuation in a merger with Special Purpose Acquisition Company (SPAC), BowX Acquisition Corp. The SPAC merger will raise $1.3 billion for WeWork with the merger expecting to close by Q3 2021.
SPAC (Special Purpose Acquisition Company) is also popularly referred to as a blank cheque company, that allows the listed company without any existing businesses to raise capital through an IPO (initial public offering), and thereafter use the capital to invest into companies.
” WeWork Goes Public at $9 Billion in SPAC Merger “
WeWork to Receive $1.3 Billion
With the merger, WeWork will receive approximately $1.3 billion, with $483 million of cash from BowX and a fully committed $800 million private placement investment with key investors including Insight Partners, funds managed by Starwood Capital Group, Fidelity Centaurus Capital, and funds and accounts managed by BlackRock
In October 2020, BowX Acquisition Corp had gone public on NASDAQ and raised $420 million.
The merger is expected to be completed by Q3 2021. The combined company will have approximately $1.9 billion of cash on the balance sheet and total liquidity of $2.4 billion, including a $550 million senior secured notes facility provided by SoftBank Group.
WeWork was co-founded by Adam Neumann in 2010 in New York, United States. The flexible office space company was later backed by one of the largest and prominent investor in the world, SoftBank Group. In 2019, the proposed and later aborted IPO had valued WeWork at more than $40 billion. Shortly after the aborted IPO, co-founder Adam Neumann stepped down as CEO.
Today, WeWork is led by CEO Sandeep Mathrani and WeWork is in 851 locations in 152 cities with more than 1 million workstations worldwide. In 2020, excluding China, WeWork recorded revenue of $3.2 billion.
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Video – CNBC: WeWork CEO
Video – Bloomberg: Rise & Fall of WeWork