Coworking operator WeWork lost $3.2 billion last year and is now trying to raise $1 billion through a blank-check company.
The company also brought in $3.2 billion in revenue last year despite losing the same amount. However, the revenue loss is actually an improvement from 2019, when it lost $3.5 billion.
WeWork’s occupancy rates fell to 47% worldwide by the end of 2020 due to the ongoing pandemic. Still, the firm has been struggling to pick up the pieces since its failed attempt to go public in 2019.
Now, the company is trying to find another way to go public by merging with a special purpose acquisition company (SPAC).
So far, WeWork has been in talks to merge with SPAC BowX Acquisition Corp in addition to raising money from other investors.
This new deal would value the coworking company at $9 billion, a sharp drop from its $47 billion valuation in 2019.
WeWork has spent the past year letting go of underperforming locations, renegotiating leases and laying off staff in an effort to alleviate its expenses.
In fact, during the third quarter of last year, WeWork cut its cash burn almost in half from a record of $1.4 billion in the fourth quarter of 2019 to $571 million.
