(Reuters) -WeWork lost $ 3.2 billion last year, the office-sharing startup disclosed in a presentation shown to potential investors as part of a $ 1 billion investment proposal and a listing on the stock market , a person familiar with the matter told Reuters.
The company’s losses decreased by $ 3.5 billion in 2019 and it plans to go public with a $ 9 billion valuation, including debt through a merger with a special purpose acquisition company (SPAC), according to with a person directly informed in the presentation sent to new potential and existing investors.
SPAC is a front company that raises funds in an IPO in order to acquire a private company, which then becomes public as a result of the merger.
Reuters reported in January that WeWork was in talks to go public through a merger with SPAC and was exploring fundraising from private investors.
The company’s plans for a high-profile initial public offering imploded in October 2019 due to widespread criticism of its founder Adam Neumann’s business model and management style. SoftBank Group Corp later rescued the startup.
WeWork is now in negotiations with BowX Acquisition Corp, a blank check company that raised $ 420 million in August, according to the Financial Times, which released the news for the first time.
WeWork declined to comment on the report.
The report said that WeWork predicted a 90% occupancy recovery by the end of 2022, from 47% at the end of last year, when the COVID-19 pandemic closed its co-working spaces worldwide.
The company expects adjusted earnings before interest, taxes, depreciation and amortization of $ 485 million next year, the report added.
Reporting by Uday Sampath and Anirban Sen in Bengaluru, additional reporting by Aakriti Bhalla in Bengaluru; Editing by Aditya Soni and Sherry Jacob-Phillips