The United States based office sharing firm WeWork is currently working to get listed and is talking to do that through a merger with a special purpose acquisition company (SPAC)m said reports quoting sources.
The company currently owned by the Japanese conglomerate SoftBank is also reported to be exploring avenues to raise funds from private investors.
It was just a little over a year ago that the company had failed to launch an initial public offering (IPO) over internal issues.
There was extensive criticism of the business model of the office sharing startup as well as of its management style of its founder Adam Neumann which resulted in the spectacular imploding in October 2019 of office-sharing startup’s plans for its high profile IPO.
Over the last two months, talks with at least three blank check firms had been held by WeWork, said reports quoting sources with direct knowledge of the matter. The reports also cautioned about the potential of the talks falling flat.
“We have SPACs approaching us on a weekly basis,” WeWork Executive Chairman Marcelo Claure said at a Bloomberg conference. Claure is also chief operating officer of SoftBank Group Corp, which bailed out the startup.
A news report published earlier by The Wall Street Journal had claimed that talks were being held by WeWork with a SPAC affiliated with Bow Capital Management LLC and any deal resulting out of the negotiations could value WeWork at almost $10 billion.
The company was exploring options, including a deal with a blank check firm, a spokeswoman for the office- sharing startup confirmed in a statement to the medi abaout the developments reported in the media.
“Over the past year, WeWork has remained focused on executing our plans for achieving profitability. Our significant progress combined with the increased market demand for flexible space, shows positive signs for our business,” the company said.
“We will continue to explore opportunities that help us move closer towards our goals,” it added.
In 2019, the market valuation of WeWork as calculated from the investment rounds, was pegged at a much high $47 billion. However its market value simply plummeted to about $8 billion following Japan’s SoftBank being forced to infuse a life saving financing lifeline for the firm without which it would have gone bankrupt. SoftBank is currently the majority stakeholder of the company.
(Adapted from FinancialPost.com)