WeWork is officially going public by merging with a special purpose acquisition company at a much lower valuation than its $47 billion from a few years ago.
Today, the coworking company announced it would merge with blank check firm BowX Acquisition that values WeWork at $9 billion.
The operator will be receiving around $1.3 billion in cash as part of the deal that will go towards its growth plans.
$800 million of this will come from prestigious investors including Insight Partners, Starwood Capital Group and Fidelity and BlackRock.
Despite the major obstacles the coworking industry has faced over the past year, WeWork said its business has managed to hold up relatively well.
As of December 2020, WeWork walked away from over 100 unperforming locations and now nearly half of its customer base includes large companies. The company also said it is moving towards more long-term leases as opposed to its usual monthly model.
“WeWork has spent the past year transforming the business and refocusing its core, while simultaneously managing and innovating through a historic downturn,” said Sandeep Mathrani, CEO of WeWork. “As a result, WeWork has emerged as the global leader in flexible space with a value proposition that is stronger than ever.”
