WeWork lost $3.2 billions last year and asks investors for a Spac deal
In a conversation with potential investors, WeWork released a document reporting a loss of $3.2 billionin 2020. The documents were obtained by the Financial Times and also detail what the company calls “Project Windmill”, related to a new attempt to go public through a merger.
According to the publication, the coworking network is seeking investors for a possible merger with another company, in order to generate capital appreciation. The idea is that the initial public offering (IPO) sought by WeWork is $9 billion.
In the face of the announcement of the first IPO, WeWork fell under the scrutiny of investors and financial leaders, who accused Softbank, which owns the company, of exaggerating its real market valuation to obtain more money during the opening. In the midst of all the turbulence, the company decided to cancel the offer and return to analyze other investments. According to several press reports, Softbank issued an ultimatum: WeWork needs to generate some profit in 2021.
That year has come, and now WeWork is looking for a new IPO option. The company is talking to BowX Acquisition Corp to get some of the money needed for a second IPO. BowX has former professional basketball player Shaquille O’Neal as one of its finance advisors, as well as being led by Vivek Ranadivé, founder and former director of the Tibco software group, as well as co-owner of the team. Sacramento Kings basketball.