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WeWork Plans $9 Billion SPAC Listing Through BowX Corp - Report

The Wall Street Journal reported Friday that office space sharing group WeWork has agreed to a $9 billion merger with Nasdaq-listed BowX, a San Francisco-based SPAC.

WeWork is planning to go public through Acquisition Corp. in a so-called SPAC listing that would value the shared office space group at around $9 billion, the Wall Street Journal reported Friday.

The Journal report added that WeWork, which tried and failed to go pubic in a $47 billion IPO in 2019, will raise another $1.3 billion in funds from private equity groups including Starwood Capital Group.

Earlier this week, WeWork reportedly said it lost $3.2 billion over the whole of 2020 -- on top of the $3.5 billion in red ink spilled in 2019 -- as it attempted to woo investors ahead of its planned merge with BowX, a so-called black check investment vehicle that targets companies for acquisition and then merges them into their existing listing. 

BowX is an affiliate of Bow Capital, a San Francisco, California-based investment group founded by Vivek Ranadivé that includes NBA legend Shaquille O'Neal as one of its key supporters.

BowX shares were marked 2.6% higher in pre-market trading on the Nasdaq Friday following the Journal report, indicating an opening bell price of $9.73 each before being halted by market regulators. 

More than $96 billion has been raised by around 300 SPACs so far this year -- compared to $83.4 billion over the whole of 2020 -- with another 230 waiting in the wings to add another $58 billion to the growing total. 

The IPOX SPAC index, a benchmark for performance in the blank-check market, is up more than 48.7% over the past year, but have fallen some 22.5% from its February 17 peak amid a series of under-performing SPAC debuts and growing concerns over the lack of viable targets for the now 700-plus groups that are listed.