WeWork said to be in talks to go public through merger

BENGALURU • WeWork is in talks to go public through a merger with a special purpose acquisition company (Spac) and is also exploring raising funds from private investors, a little over a year after its botched initial public offering (IPO), according to a source familiar with the matter.

The office sharing start-up's plans for its high-profile IPO imploded spectacularly in October 2019 due to widespread criticism over its business model and the management style of its founder Adam Neumann.

The source said that WeWork had held talks with at least three blank-cheque firms over the past two months, cautioning that current talks could fall apart.

"We have Spacs approaching us on a weekly basis," WeWork executive chairman Marcelo Claure said at a Bloomberg conference.

Mr Claure is also chief operating officer of SoftBank Group, which bailed out the start-up.

The Wall Street Journal earlier reported that WeWork was in talks with a Spac affiliated with Bow Capital Management, and a deal could value the start-up at nearly US$10 billion (S$13.3 billion).

A spokesman for WeWork confirmed in a statement that the company is exploring options, including a deal with a blank-cheque firm.

"Over the past year, WeWork has remained focused on executing our plans for achieving profitability. Our significant progress, combined with the increased market demand for flexible space, shows positive signs for our business," the company said.

"We will continue to explore opportunities that help us move closer towards our goals," it added.

WeWork was valued at nearly US$47 billion in 2019, but saw its valuation plummet to approximately US$8 billion after SoftBank was forced to extend a life-saving financing lifeline to the company.

REUTERS