WeWork is finally going public via a SPAC after abandoning an IPO in 2

p 1 wework is finally going public via a spac after abandoning an ipo in 2019


In 2019, WeWork was the tech darling of Silicon Valley. Or not less than it began the 12 months that approach. By the tip of it, the corporate had a very public and dramatic fall–a fall that included abandoning its IPO. However right now WeWork introduced it is finally shifting forward with earlier plans to go public–nonetheless, it’ll accomplish that via a SPAC as a substitute of an IPO, The Wall Avenue Journal reports.

However what is a SPAC? Its acronym stands for “particular objective acquisition firm” and it is principally a shell agency that is already public and listed on a inventory change, and it’s that agency that acquires a presently personal firm, thus taking that personal firm public in a roundabout approach. Or as Don Butler, managing director at Thomvest Ventures, told CrunchBase, “You’ll be able to consider it like: an IPO is principally a firm in search of cash, whereas a SPAC is cash in search of a firm.”

In WeWork’s case, WeWork is the personal firm and a agency referred to as BowX Acquisition Corp is the already public firm buying WeWork via the SPAC. The deliberate merger between the 2 corporations will worth WeWork at round $9 billion, together with debt. However whereas $9 billion is nothing to sneeze at, it’s a far cry from the over $46 billion WeWork was valued at in early 2019 on the peak of Silicon Valley’s love affair with the corporate.