(WBHnews) – WeWork has agreed to go public by means of a merger with blank-check agency BowX Acquisition Corp, in a deal that values it at $9 billion, the office-sharing startup mentioned on Friday.
It marks a steep drop from the $47 billion that WeWork was valued for an inventory in 2019, forward of a botched itemizing plan that imploded as a consequence of investor issues over its enterprise mannequin and its founder Adam Neumann’s administration type.
Again then Goldman Sachs bankers had mentioned the valuation may hit as a lot as $65 billion, however as a substitute it plummeted to roughly $8 billion after SoftBank Group Corp was compelled to increase a life-saving financing lifeline to WeWork.
The startup instructed potential buyers it misplaced about $3.2 billion final 12 months as a part of a pitch for a inventory market itemizing by merging with a particular goal acquisition firm (SPAC), sources instructed WBHnews earlier this week.
WeWork will fetch $1.3 billion in money from the most recent deal, together with $800 million in non-public funding from Perception Companions, funds managed by Starwood Capital Group, Constancy Administration and others, the Journal reported.
A SPAC is a shell agency that makes use of proceeds from a public itemizing to purchase a non-public agency and WeWork is the most recent in a slew of high-profile corporations which have taken this path to the markets.
Tesla Inc’s rival Lucid Motors and Richard Branson-led Virgin Galactic Holdings Inc too have chosen SPAC mergers over conventional IPOs.
Southeast Asia’s ride-hailing and meals supply large Seize Holdings is in talks to go public in the USA by means of a mega-merger that might worth it at $40 billion, WBHnews reported earlier this month.
BowX Acquisition raised $420 million in its IPO in August final 12 months.
Reporting by Niket Nishant in Bengaluru; Enhancing by Ramakrishnan M. and Arun Koyyur