WeWork Discloses $3.2 Billion Loss in 2020 As It Seeks SPAC Deal: FT

WeWork
FILE PHOTO: A WeWork logo is seen outside its offices in San Francisco, California, U.S. September 30, 2019. REUTERS/Kate Munsch/File Photo

WeWork lost $3.2 billion last year, according to documents shown to prospective investors by the office-sharing startup as apart of a pitch for $1 billion in investment and a stock market listing, the Financial Times reported on Monday.

The company’s losses narrowed from $3.5 billion in 2019 and it plans to go public at a valuation of $9 billion including debt through a merger with a special purpose acquisition company (SPAC), the report said.

WeWork declined to comment on the report.

Reuters reported in January that WeWork was in talks to go public through a merger with a SPAC and was exploring raising funds from private investors.

The company’s plans for a high-profile initial public offering imploded in October 2019 due to widespread criticism over its business model and its founder Adam Neumann’s management style. SoftBank Group Corp later bailed out the startup.

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WeWork is now in talks with BowX Acquisition Corp, a blank-check company that raised $420 million in August, according to the Financial Times report.

The report said that WeWork forecast occupancy to rebound to 90% by the end of 2022, from 47% at the end of last year when the COVID-19 pandemic shut its co-working spaces around the world.

The company expects adjusted earnings before interest, taxes, depreciation and amortization of $485 million next year, the report added. 

Reporting by Uday Sampath in Bengaluru; Editing by Aditya Soni; Reuters

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