WeWork will go public after a $9bn SPAC merger was approved yesterday.
Shareholders in BowX Acquisition overwhelmingly voted to approve a combination, meaning that the shared office provider will appear on the New York Stock Exchange on Thursday, under the ticker “WE”.
Shares in BowX closed down 9.9%, or $1.03, at $9.37. WeWork, founded in 2010 by Adam Neumann and Miguel McKelvey, has 700 locations across 150 cities in several dozen countries and was once valued at $47bn.
The merger is expected to generate $1.3bn in cash for WeWork, which made a loss of $3.2bn in 2020. The company’s revenue is also now falling short of its $3.2bn projection for 2021.
In an updated presentation, WeWork said revenue had totalled just under $1.2bn in the first half of the year and was expected to be $1.5bn in the second half. WeWork’s actual revenue for the third quarter was approximately $658m, meaning it has to bring in just over $806m from October to December in order to meet its revised second-half projection.
