WeWork is trying its hand at the public markets again, after its failed IPO nearly 2 years ago. The company will be using the increasingly popular public conduit, a SPAC, to provide liquidity for its hurting shareholders finally.
WeWork will be merging with BowX Acquisition Corp. in a deal that would value the company at $9 billion. This $9 billion valuation is a fraction of what SoftBank paid in early 2019, which valued the business at $47 billion.
The company was miss managed, overleveraged, and a real-estate company disguised as a tech company, which is what led to its eventual (short-term) downfall.
I still think this business model may hold value in the ‘new normal’ hybrid workspace environment if it can properly restructure for profitability. Commercial real estate is going to be cheap for some time in the post-pandemic world, allowing WeWork to buy it up at a discount and provide those hybrid workers with a space outside their homes to work.
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