SAWT BEIRUT INTERNATIONAL

| 23 October 2021, Saturday |

WeWork looks for SPAC deal after recording $3.2 billion loss last year

WeWork, the office-sharing start-up, lost $3.2 billion last year. This was disclosed in a presentation shown to prospective investors as part of a pitch for $1 billion in investment and a stock market listing, according to a source.

The company’s losses narrowed from $3.5 billion in 2019 and it plans to go public at a valuation of $9 billion including debt through a merger with a special purpose acquisition company (SPAC), the sources said.

A SPAC is a shell company that raises funds in an IPO with the aim of acquiring a private company, which then becomes public as result of the merger.

Reuters reported in January that WeWork was in talks to go public through a merger with a SPAC and was exploring raising funds from private investors.

The company’s plans for a high-profile initial public offering imploded in October 2019 due to widespread criticism over its business model and its founder Adam Neumann’s management style. SoftBank Group later bailed out the start-up.

WeWork is now in talks with BowX Acquisition Corporation, a blank-check company that raised $420 million in August, according to the Financial Times, which first reported the news.

WeWork declined to comment on the report.

The report said that WeWork forecast occupancy to rebound to 90 percent by the end of 2022, from 47 per cent at the end of last year when the Covid-19 pandemic shut its co-working spaces around the world.

The company expects adjusted earnings before interest, taxes, depreciation and amortization of $485 million next year, the report added.