After failing miserably the first time around, WeWork merges with NBA owner’s SPAC for second chance to go public
The coworking startup gets a new lease of life for shareholders thanks to BowX Acquisition Corp.
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March 26, 2021
2 minutes to read
Lest you think PSPCs were the only realm for adult website hosts or Grand Slam winning tennis stars, they are also the tool of choice for NBA stars and franchise owners.
the Wall Street newspaper got the scoop that BowX Acquisition Corp. – a SPAC launched last year by Bow Capital founder and Sacramento Kings owner Vivek Ranadivé who counts Shaquille O’Neal among his top advisers – took its first steps by merging with volatile real estate startup WeWork.
It’s been about a year and a half since WeWork’s IPO failed with investors. Founder Adam Neumann was sacked as CEO and SoftBank took over the assets of the coworking company. (Where’s the time going?) But as TechCrunch reported, WeWork has slowly stabilized under new management, setting the stage for Ranadivé’s bet on its future returns.
Related: Stripchat Becomes First Adult Cam Site To Launch SPAC
Speak Newspaper, BowX “values WeWork at $ 9 billion, including debt,” and “under the deal, WeWork would raise $ 1.3 billion, including $ 800 million in so-called private equity investment -investment, or PIPE, with Insight Partners, funds managed by Starwood Capital Group, Fidelity Management and others. “
Just as a reminder, SPAC stands for Special Purpose Acquisition Company, and is actually a blank check company formed to specialize in acquisitions for mutually lucrative public offerings. Which, while not as sexy as an NFT, could prove to be just as speculative – and spectacularly – lucrative.