The commercial real estate provider WeWork is attempting to go public via a merger with the special acquisition company BowX Acquisition (NASDAQ:BOWXU). The deal values WeWork at around $9 billion including debt.
The announcement on Friday also disclosed that WeWork would raise $1.3 billion in new capital as part of the deal. $800 million of that would be in the form of private investment in public equity (PIPE) from Insight Partners and Fidelity Management, among others.
WeWork is a provider of flexible office space and was once considered a unicorn in the new economy. But after its failed IPO in 2019, caused by the revelation of massive losses in regulatory files, appetite for the New York venture could not recover.
The company was then valued at around $47 billion, compared to its $9 billion valuation now. After the controversial CEO Adam Neumann stepped down from the board in response to the IPO debacle, WeWork was able to make some progress in cutting losses and making digital innovations.
WeWork now plans to capitalize on the influx of SPACs and accomplish a successful second attempt to go public. What do you think, will WeWork be finally triumphant?