WeWork reportedly agrees to a SPAC deal to go public

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A visitor attends the opening ceremony of WeWork Hong Kong flagship location in Hong Kong, China February 23, 2017.

Bobby Yip | Reuters

WeWork has agreed to go public via a merger with blank-check agency BowX Acquisition Corp that values the office-sharing startup at $9 billion together with debt, The Wall Street Journal reported on Friday, citing individuals conversant in the matter.

The corporate disclosed to potential traders it had misplaced about $3.2 billion final yr as a part of a pitch for a inventory market itemizing by merging with a particular goal acquisition firm (SPAC), sources advised Reuters earlier this week.

The office-sharing startup’s plans for its high-profile preliminary public providing imploded in October 2019 because of investor issues over the office-sharing startup’s enterprise mannequin and its founder Adam Neumann’s administration model.

The corporate can be elevating $1.3 billion in capital, together with $800 million in non-public funding from Perception Companions, funds managed by Starwood Capital, Constancy Administration and others, the Journal reported.

WeWork didn’t instantly reply to a Reuters request for remark.

A SPAC is a shell agency that makes use of proceeds from an IPO to purchase a personal agency.

WeWork was valued at practically $47 billion in 2019 however noticed its valuation plummet to roughly $8 billion after SoftBank was pressured to increase a life-saving financing lifeline to WeWork.

BowX Acquisition raised $420 million in its IPO in August final yr.