San Francisco, Jan 29 (IANS) Co-working major WeWork, that went through a tumultuous Covid-hit 2020 after a failed IPO attempt in 2019 that saw then-CEO Adam Neumann evicted and the company’s value nosedived, is now reportedly planning to combine with a special-purpose acquisition company (SPAC) to stage a comeback.
A possible deal, as reported by the Wall Street Journal, could value WeWork at $10 billion, ushering a new era for WeWork to enter the public markets and launch a traditional initial public offering (IPO).
“WeWork’s board and its Chief Executive Sandeep Mathrani have been weighing offers from a SPAC affiliated with Bow Capital Management LLC and at least one other unidentified acquisition vehicle for several weeks,” the report said on Thursday, citing people familiar with the matter.
However, “the talks are complicated and there is no guarantee WeWork will end up striking any deal soon”.
WeWork currently has more than $3.6 billion of cash and unfunded cash commitments, including more than $875 million in available cash — “more than sufficient liquidity to weather a prolonged COVID environment.”
In a statement to The Verge, WeWork said: “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. We will continue to explore opportunities that help us move closer toward our goals.”
In late October, Mathrani told the media that WeWork was on track to turn profitable some time this year, and that after it hit “profitable growth first,” it would “revisit the IPO plan.”
In the same month, WeWork announced to strengthen its vision of attaining profitable and sustainable growth across all spaces through some key appointments in India.
The development comes after WeWork India in June said it had raised $100 million funding from WeWork Global for sustainable growth of its business.
The new appointments include Clifford Lobo who has been named the new Chief Financial Officer at WeWork India.
Among other appointments, Hiranmai Rallabandi joined as the General Counsel of WeWork India, while Santosh Martin has been elevated to Head of Sales for WeWork India.
WeWork India in May said that it decided to lay off around 20 per cent of its staff.