Now it’s official: WeWork Collaborative Workspace is becoming a public company through a SPAC merger with BowX Acquisition Corp. The company’s value in the IPO will be $ 9 billion including debt – very far from the company’s peak in the Adam Neumann period before the IPO was canceled.
Reports of the expected SPAC merger began as early as January, but now the company has officially announced the move.
As part of the merger, WeWork will raise $ 1.3 billion, including $ 800 million in a private placement.
BowX Acquisition Corp raised about $ 420 million last August.
Reuters reported this week that in a presentation to potential investors, the company revealed that it lost about $ 3.2 billion last year.
The current value of $ 9 billion is significantly lower than the company’s valuations from two years ago – then it’s almost $ 47 billion.
SPAC is an IPO method that allows a private company to enter the stock exchange through a merger with a company that has no business activity. The SPAC raises money from the public on the basis of the promise to merge existing activities into it within a given period of time. This is a long-standing trend that has recently gained immense popularity on Wall Street, especially among technology companies.