Report: WeWork could be getting SPAC’d soon, too

Report: WeWork could be getting SPAC’d soon, too

According to a brand new report within the WSJ, WeWork, the co-working juggernaut that noticed its try at a public providing blow up in spectacular style within the fall of 2019, would possibly turn out to be a publicly traded firm by merging with a blank-check firm.

Specifically, says the WSJ,  the New York-based outfit has been “weighing gives from a SPAC affiliated with Bow Capital Management LLC and at the very least one different unidentified acquisition automobile for a number of weeks” in a deal that might worth WeWork at round $10 billion.

Asked for extra data, a spokesperson for the corporate despatched us the identical assertion that was despatched to the Journal: “Over the previous 12 months, WeWork has remained targeted on executing our plans for reaching profitability. Our vital progress mixed with the elevated market demand for versatile house, reveals constructive indicators for our enterprise. We will proceed to discover alternatives that assist us transfer nearer in direction of our objectives.”

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The firm can be considering inbound curiosity for extra personal funding, in keeping with an individual near the corporate.

According to the WeWork spokesperson, WeWork has greater than $3.6 billion of money and unfunded money commitments, together with greater than $875 million in obtainable money and it believes that is “greater than adequate liquidity to climate a protracted COVID surroundings.”

WeWork’s CEO Sandeep Manthrani had stated final fall that WeWork was on monitor to show worthwhile a while this 12 months and that it hit “worthwhile progress first” it could “revisit the IPO plan.” Speaking to studies in India over a Zoom name from New York, he added, as reported by Bloomberg, that as of October, WeWork was “100% accomplished with rightsizing” after parting methods with 8,000 staff, or roughly one-third of its headcount.

Manthrani stepped into the function of CEO in February of final 12 months, following the ouster of WeWork cofounder Adam Neumann from the corporate months earlier on the heels of the corporate’s pulled IPO.

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Mathrani beforehand spent the final 1.5 years because the CEO of Brookfield Properties’ retail group and as a vice chairman of Brookfield Properties. Before becoming a member of the Chicago-based firm, he spent eight years because the CEO of General Growth Properties. It was one of many largest mall operators within the U.S. till Brookfield acquired it for $9.25 billion in money in 2018.

Mathrani additionally spent eight years as an govt vice chairman with the publicly traded actual property firm Vornado Realty Trust.

Bow Capital Management is run by Vivek Ranadive, the founding father of Tibco Software; in July, it registered plans for a $350 million blank-check firm that might deal with buying a enterprise within the expertise, media and telecommunications industries.

Though there’s been a lot dialogue over time over whether or not WeWork is a tech firm or rather more of a pure actual property play, the corporate has lengthy insisted it’s the former.

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