After failing to go public in 2019, shared workspace company WeWork is once again attempting to list its shares on Wall Street, this time through the use of a special purpose acquisition company or SPAC.
The Wall Street Journal cited sources familiar with the matter in its report claiming that WeWork had been approached by at least two SPACs, including a company with ties to Bow Capital Management.
SPAC public listings in the U.S. have generated a surge of interest among companies seeking capital, and investors looking to get in on a ground-floor opportunity. Unlike conventional initial public offerings, SPAC listings are not required to go through months of scrutiny during an IPO roadshow.
Sources said that a deal could potentially value WeWork at around $10 billion. Specific details about the deal are not available and sources said that it may or may not materialize as the company could choose to stay private and raise capital through additional funding rounds.
In a recent statement, WeWork's chief communications officer, Lauren Fritts, hinted at the possibility of a listing as one way to help it achieve its goals.
"Our significant progress combined with the increased market demand for flexible space, shows positive signs for our business. We will continue to explore opportunities that help us move closer towards our goals," Fritts said.
Since it was founded in 2010 by Adam Neumann and Miguel McKelvey, the company has attracted dozens of high-profile investors, including Japan's Softbank, which poured billions of dollars into the company through its Vision Fund. At its peak, the company was estimated to have had a private valuation of more than $47 billion.
WeWork's fall from grace started after it tried to go public in 2019. The company's financial reporting practices were put into question after its prospectus revealed significant losses that were hidden under invented accounting terms such as "community adjusted earnings before interest, taxes, depreciation, and amortization."
The company's reputation was also severely damage following reports of Neumann's misconduct. This included reports of Neumann traveling on private flights with drugs on board.
Neumann resigned as the company's CEO last year. WeWork's shareholders have been trying to repair its reputation and find stability ever since.
