WeWork Shares Fall by 24%
WeWork, the co-working office space company, has seen its shares drop by 24 per cent during extended trading, causing “substantial doubt” over the...
Read Full ArticleWeWork, the co-working office space company, will see its shares start trading on the stock market, via its merger with BowX Acquisition Corp.
This comes less than two years after their planned initial public offering (IPO) collapsed when investors rejected its $20 billion valuation and it revealed that the business was facing huge losses. This led to the resignation of WeWork’s CEO Adam Neumann.
The transaction values WeWork at an initial enterprise value of approximately $9 billion. The merger will provide WeWork with approximately $1.3 billion of cash.
With COVID-19 accelerating the demand for flexible workspace, WeWork aims to continue to “redefine the flexible workplace market by digitizing its global physical network.”
As traditional landlords look to embrace flexible working models, the company intends to offer landlords an “asset-light technology platform for managing and orchestrating flexible space.”
Marcelo Claure and Sandeep Mathrani will continue to lead WeWork as Executive Chairman and Chief Executive Officer, respectively, along with the rest of the company’s leadership team. Following the closing, Vivek Ranadivé of BowX and Deven Parekh of Insight Partners will join the company’s Board of Directors.
Sandeep Mathrani, CEO of WeWork, said, “WeWork has spent the past year transforming the business and refocusing its core, while simultaneously managing and innovating through a historic downturn. As a result, WeWork has emerged as the global leader in flexible space with a value proposition that is stronger than ever. Having Vivek and the BowX team will be invaluable to WeWork as we continue to define the future of work.”
Vivek Ranadivé, Chairman and Co-CEO of BowX Acquisition Corp., added, “I’m thrilled to partner with Sandeep, Marcelo and the entire WeWork team as they continue to transform this business and the real estate industry at large. This company is primed to achieve profitability in the short-term, but the added long-term opportunity for growth and innovation is what made WeWork a perfect fit for BowX. With a fantastic core business, I see WeWork as a company at an inflection point, with an incredible roster of key members coupled with the vision and leadership to digitize an enormous industry.”
Picture: a photograph of the interior of one of WeWork’s offices. Image Credit: WeWork
Article written by Ella Tansley | Published 31 March 2021
WeWork, the co-working office space company, has seen its shares drop by 24 per cent during extended trading, causing “substantial doubt” over the...
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