According to a source familiar with the matter at hand, WeWork is in talks to go public through a merger with a special purpose acquisition company (SPAC); it is also seeking funds from private investors a little more than a year after its botched initial public offering (IPO).
WeWorks’s high profile IPO imploded due to widespread criticism over its business model and its founder – Adam Neumann’s management style.
WeWork has held talks with at least three blank-check firms over the past two months, said a source familiar with the matter at hand, while cautioning that negotiations could fall apart.
“We have SPACs approaching us on a weekly basis,” said WeWork Executive Chairman Marcelo Claure. Incidentally he is also the chief operating officer of SoftBank Group Corp, which bailed out WeWorks.
The development comes in the wake of media reports that WeWork was in talks with a SPAC affiliated with Bow Capital Management LLC in a deal that values at nearly $10 billion.
Confirming the news, a WeWork’s spokeswoman said, the company was exploring options, including a deal with a blank-check firm.
“Over the past year, WeWork has remained focused on executing our plans for achieving profitability. Our significant progress combined with the increased market demand for flexible space, shows positive signs for our business,” said WeWorks. “We will continue to explore opportunities that help us move closer towards our goals”.
In 2019, the startup was valued at nearly $47 billion. It however saw its valuation plummet to around $8 billion after SoftBank was forced to extend a financing lifeline to WeWork.