The Leading News & Information Service For The Facilities, Workplace & Built Environment Community

WeWork Shares to go Public Via Merger

WeWork Shares to go Public Via Merger
31 March 2021
 

WeWork, 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.

 

Accelerated Demand for Flexible Office Space

 

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

Share



Related Articles

First Office Space in Cambridge’s The Grafton Planned

Legal & General has submitted plans for new office space in Cambridge’s The Grafton in partnership with flexible workspace provider x+why. This project will...

 Read Full Article
22 Bishopsgate Complete

Europe’s first vertical village, 22 Bishopsgate, has reached completion. Powered 100 per cent by renewable energy, 22 Bishopsgate is designed to put people first...

 Read Full Article
Reassessing Your Office Footprint for Post-COVID Working

Emma Long from BizSpace shares her top tips for reassessing your office space commitments.  Emma Long is the Managing Director (North) of BizSpace, a provider of...

 Read Full Article
Coffee And Casual Beats Wacky

As the corporate world spend millions competing with weird and wacky office designs, new research reveals that Brits actually want a flat white or cappuccino as...

 Read Full Article
The New Office Dynamic – What's Expected?

More than a third of US and UK office workers describe the prospect of going back to the office as the equivalent of going out to meet with friends, according to a...

 Read Full Article
An Unprecedented Twelve Months – Why Should a Company Get a Business Valuation Now? 

The ability to place an accurate value on your business is essential, particularly during challenging economic times, according to finance experts. A business...

 Read Full Article
Eco Business Village Planned for Cambridgeshire

One of the UK’s greenest innovation business villages is being planned in Cambridgeshire, centred on landscape-led sustainability and low carbon...

 Read Full Article
Jones FM Acquires Funding From Thincats

Jones FM, the London-based facilities management company, has been supported with a share buyback funding package by finance provider...

 Read Full Article
JLL to Relocate from Canary Wharf to Wood Wharf

JLL will take 38,000 sq ft at 20 Water Street, Wood Wharf to house its Docklands office. The global real estate adviser will relocate the teams currently based at...

 Read Full Article
New Appointments in Facilities Management – April 2021

ISS and NG Bailey are amongst the organisations that welcomed new appointments this April. Here are some of the latest staff changes within facilities management and...

 Read Full Article