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WeWork takes SPAC route to go public in $9 billion deal

Back then Goldman Sachs bankers had said the valuation could hit as much as $65 billion, but instead it plummeted to roughly $8 billion after SoftBank Group Corp was forced to extend a life-saving financing lifeline to WeWork.

March 26, 2021 / 08:05 PM IST
Source: Reuters

Source: Reuters

WeWork has agreed to go public through a merger with blank-check firm BowX Acquisition Corp, in a deal that values it at $9 billion, the office-sharing startup said on Friday.

It marks a steep drop from the $47 billion that WeWork was valued for a listing in 2019, ahead of a botched listing plan that imploded due to investor concerns over its business model and its founder Adam Neumann's management style.

Back then Goldman Sachs bankers had said the valuation could hit as much as $65 billion, but instead it plummeted to roughly $8 billion after SoftBank Group Corp was forced to extend a life-saving financing lifeline to WeWork.

The startup told prospective investors it lost about $3.2 billion last year as part of a pitch for a stock market listing by merging with a special purpose acquisition company (SPAC), sources told Reuters earlier this week.