{"id":118605,"date":"2021-03-27T16:50:41","date_gmt":"2021-03-27T16:50:41","guid":{"rendered":"https:\/\/precoinnews.com\/?p=118605"},"modified":"2021-03-27T16:50:41","modified_gmt":"2021-03-27T16:50:41","slug":"patricof-wework-tried-to-take-advantage-of-the-public-2","status":"publish","type":"post","link":"https:\/\/precoinnews.com\/markets\/patricof-wework-tried-to-take-advantage-of-the-public-2\/","title":{"rendered":"Patricof: WeWork tried to take advantage of the public"},"content":{"rendered":"<p><cite>New York (CNN Business)<\/cite>It took a lot longer than expected, but WeWork is finally set to go public through a merger with a special purpose acquisition company \u2014 and at a huge discount to what the startup was once worth.<\/p>\n<p>WeWork announced Friday morning that is merging with BowX Acquisition, a blank check firm known as a SPAC, in a deal that values the office sharing company at $9 billion. Shares of BowX were up more than 10% in early trading.<br \/>\nWeWork was once valued at $47 billion, making it one of the most valuable unicorn startups in the world. <\/p>\n<ul><\/ul>\n<p>But the company shelved plans for an initial public offering in 2019 after questions about corporate governance emerged, eventually leading to the ouster of controversial co-founder and CEO Adam Neumann. Neumann is reportedly now set to get about a $500 million settlement as a golden parachute from SoftBank, WeWork&#8217;s top investor. <\/p>\n<ul><\/ul>\n<p><img decoding=\"async\" alt=\"Former WeWork CEO is getting a massive payout\" class=\"media__image\" src=\"\/\/cdn.cnn.com\/cnnnext\/dam\/assets\/191009100250-01-adam-neumann-wework-file-large-169.jpg\"><br \/>\n<img decoding=\"async\" alt=\"Former WeWork CEO is getting a massive payout\" class=\"media__image\" src=\"\/\/cdn.cnn.com\/cnnnext\/dam\/assets\/191009100250-01-adam-neumann-wework-file-large-169.jpg\"><\/p>\n<ul>\n<h3>JUST WATCHED<\/h3>\n<h2><span>Former WeWork CEO is getting a massive payout<\/span><\/h2>\n<\/ul>\n<h4>MUST WATCH<\/h4>\n<p><span><\/span><\/p>\n<p>SoftBank wound up taking an even bigger stake in WeWork as part of a bailout package. <\/p>\n<p>WeWork will be receiving about $1.3 billion in cash as part of the deal to help fund future growth plans, the company said in a press release about the SPAC.<br \/>\nA big chunk of that \u2014 $800 million \u2014 will come from an A-list group of investors that includes venture capital firm Insight Partners, real estate leader Starwood Capital Group, and investing giants Fidelity and <span>BlackRock<\/span> <span>(<span>BLK<\/span>)<\/span>. (Insight&#8217;s Deven Parekh is also joining the board.)<br \/>\nWeWork added that its business has held up reasonably well during the past year, even though many companies haven&#8217;t been using office space as more employees work from home during the Covid-19 pandemic.<br \/>\nThe company also said it had exited more than 100 underperforming locations as of December 2020. Large businesses now account for about half of its customers, up significantly from 10% in 2015. WeWork has also shifted more of its members to longer-term leases as opposed to monthly commitments.<br \/>\nWeWork&#8217;s 2020 sales, excluding China, were flat compared to 2019 at $3.2 billion. (WeWork sold a majority stake in its China business last year.) It has a pipeline of $4 billion in sales for 2021, with an estimated $1.5 billion of that as already committed revenue.<br \/>\nCurrent CEO Sandeep Mathrani, a real estate veteran who joined the company a year ago, will remain CEO and SoftBank&#8217;s Marcelo Claure will stay on as executive chairman.<br \/>\n<img decoding=\"async\" alt=\"Celebs including A-Rod and Ciara are getting into SPACs. What could go wrong?\" class=\"media__image\" src=\"\/\/cdn.cnn.com\/cnnnext\/dam\/assets\/210223130747-01-alex-rodriguez-file-large-169.jpg\"><br \/>\n&#8220;WeWork has spent the past year transforming the business and refocusing its core, while simultaneously managing and innovating through a historic downturn,&#8221; Mathrani said in the release.  &#8220;As a result, WeWork has emerged as the global leader in flexible space with a value proposition that is stronger than ever.&#8221;<br \/>\nBowX&#8217;s Vivek Ranadiv\u00e9, a former software executive who also owns the NBA&#8217;s Sacramento Kings, is joining the WeWork board. (NBA legend Shaquille O&#8217;Neal, who also works for CNN parent WarnerMedia&#8217;s Turner Sports division, is a BowX advisor too.)<\/p>\n<ul><\/ul>\n<p>The WeWork transaction is the latest in a flurry of SPACs that have brought private companies to Wall Street in the past two years.<br \/>\nRichard Branson&#8217;s <span>Virgin Galactic<\/span> <span>(<span>SPCE<\/span>)<\/span>, Bill Gates-backed electric vehicle battery maker QuantumScape and sports betting giant DraftKings have all gone public through blank check mergers.<br \/>\nSource: <a href=\"https:\/\/edition.cnn.com\/2021\/03\/26\/investing\/wework-spac-going-public\/index.html\" target=\"_blank\" rel=\"noopener\">Read Full Article<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>New York (CNN Business)It took a lot<\/p>\n","protected":false},"author":3,"featured_media":118604,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[23054],"tags":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v21.7 - 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