WeWork Reportedly In Talks to Go Public Via a SPAC Deal
There are at least two blank check companies reportedly in talks with the coworking giant.
WeWork has been weighing offers from at least two special acquisition companies, or SPACs, to go public, according to a report in the Wall Street Journal, which cited people familiar with the matter.
Some of the sources told the WSJ that a deal could value the company at $10 billion, although it is unclear whether that includes debt. One of the suitors is a SPAC affiliated with Bow Capital Management.
The sources cautioned that talks were complicated and the deal may not come to fruition.
WeWork famously tried to go public in 2019 but was rejected by investors. In one month the company went from a $47 billion valuation to $10 billion, as its numbers were scrutinized.
SPACs are undeniably on a tear with 80 rolling out this year alone so far, according to SPAC Research. SPACs allow companies to go public by bypassing the traditional IPO process. They are publicly-traded shell companies that are formed to pursue deals in the private sector by raising capital in an IPO and then searching out acquisition targets. The acquired companies then use the SPAC to sell shares to the public.
Currently they are the darlings of the tech world but are beginning to catch on with commercial real estate. This week a $300 million special purpose acquisition company launched in late 2020 by Tishman Speyer announced a merger with smart lock company Latch. The deal values Latch at $1.56 billion.
Other SPACs in the space include CBRE Acquisition Holdings sponsored by CBRE Group and Sam Zell’s Equity Distribution Acquisition Corp.