WeWork has been quiet for quite some time. After an announced, pushed back, and then ultimately failed IPO attempt, the company was hit particularly hard by the pandemic. WeWork began hemorrhaging money because of unfulfilled leases, with companies and individuals leaving in waves from its offices around the country, forcing the flexible office space aggregator to close own a slew of these spaces, indefinitely.
But it hasn’t given up yet. WeWork has announced that it is turning towards a SPAC company to continue its move to become public through a merger with BowX Acquisition Corp, a SPAC company created by Bow Capital.
We’ve been reporting on SPACs quite a bit in recent months, as more and more real estate platforms and proptech companies turn to SPACs in lieu of the traditional means of going public.
The deal has been valued at around $9 billion and will offer WeWork $1.3 billion in cash to aid in its next growth phase.