WeWork Discloses $3.2 Billion Loss In 2020 As It Seeks SPAC Deal


WeWork misplaced $3.2 billion final yr, in keeping with paperwork proven to potential traders by the office-sharing startup as aside of a pitch for $1 billion in funding and a inventory market itemizing, the Monetary Occasions https://www.ft.com/content material/46561422-9edd-4b3b-959c-85754a381d9d reported on Monday.

The corporate’s losses narrowed from $3.5 billion in 2019 and it plans to go public at a valuation of $9 billion together with debt by way of a merger with a particular objective acquisition firm (SPAC), the report stated.

WeWork declined to touch upon the report.

Reuters reported in January that WeWork was in talks to go public by way of a merger with a SPAC and was exploring elevating funds from non-public traders.

The corporate’s plans for a high-profile preliminary public providing imploded in October 2019 as a consequence of widespread criticism over its enterprise mannequin and its founder Adam Neumann’s administration fashion. SoftBank Group Corp later bailed out the startup.

WeWork is now in talks with BowX Acquisition Corp, a blank-check firm that raised $420 million in August, in keeping with the Monetary Occasions report.

The report stated that WeWork forecast occupancy to rebound to 90% by the tip of 2022, from 47% on the finish of final yr when the COVID-19 pandemic shut its co-working areas world wide.

The corporate expects adjusted earnings earlier than curiosity, taxes, depreciation and amortization of $485 million subsequent yr, the report added.

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