Behind the WeWork IPO Financing It Hopes Takes the Target Off Its Back
Photo Credit: WeWork merged with a special-purpose acquisition company, or SPAC, on Oct 20. Unsplash / PL
Skift Take
The world’s most famous flexible co-working space provider has a new lease on life following its SPAC deal, but is its model still relevant for the post-pandemic workforce? Its backers are betting so.
WeWork’s merger with a special-purpose acquisition company, or SPAC, appears more tactical than most after a difficult couple of years.
It's finally a public company, but its grueling and long-anticipated path to an IPO took some strategic turns ahead of the troubled co-working giant finally trading last Thursday.
Many questions were raised in 2019 over WeWork's business model and co-founder and CEO Adam Neumann's governance. Now it has secured financing from BowX Acquisition Corp, which for the most part shields the company from closer scrutiny, because financial results or assets don't tend to be required in SPAC financial statements.
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Many firms have taken a similar path to go public during the pandemic, particularly in travel and hospitality where a fast rebound is expected and bargains can be had, but WeWork for the most
