WeWork has decided to go public through a merger with special-purpose acquisition company BowX Acquisition Corp in a deal that would value the office-sharing startup at $9 billion, including debt.
According to people familiar with the matter, the New York-based commercial real estate company’s deal with BowX could potentially raise $1.3 billion, including $800 million in a presumed private investment in public equity, or PIPE, from Insight Partners, funds that have been managed by Starwood Capital Group, Fidelity Management and others.
The office-sharing startup previously disclosed to its prospective investors that it had lost approximately $3.2 billion in 2020 as it aimed for a stock market listing by merging with a SPAC.
WeWork’s initial plans for a high-profile initial public offering hit a roadblock and became unsuccessful in October 2019 due to concerns of investors regarding the company’s business model and the management style of office-sharing startup’s founder Adam Neumann.
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