Possible SPAC Deal: WSJ Reports BOWX Will Take WeWork Public

WSJ reported this morning that, according to sources, BowX Acquisition Corp (BOWX) will take WeWork public via SPAC merger. It's not likely to have a positive impact for the broader SPAC market.
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Quick Take

WSJ reported this morning that, according to sources, BowX Acquisition Corp (BOWX) will take WeWork public via SPAC merger at a valuation of $9 billion including debt. The deal would have a PIPE of $800 million from Insight Parters, StarWood Capital, and Fidelity ManagementThe WSJ first reported this as a possibility back in January.

The deal would be coming at an interesting time. The overall SPAC market is under intense downward pressure and BOWX just started trading under $10 earlier this week.

BOWX started trading under $10 earlier this week along with much of the SPAC Market

BOWX started trading under $10 earlier this week along with much of the SPAC Market

Take Away

Official details aren't know yet, but it is unlikely that a WeWork / SPAC deal will do much to support the overall SPAC market. Last night the SPACtwits noted how Jeb Bush getting into SPACs -- he filed for a healthcare-focused SPAC called Jackson Acquisition w/ a $300 million IPO -- was yet another bad sign for the market. A a WeWork / BOWX deal would likely take over as the current SPACs have "jumped the shark" sign.