After failing miserably the first time around, WeWork merges with NBA owner’s SPAC for second shot to go public
The coworking startup obtains a new lease on life as a shareholder thanks to BowX Acquisition Corp.
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March 26, 2021
2 min read
Lest you think PSPCs were the only domain for adult website hosts or Grand Slam winning tennis stars, they’re also the tool of choice for NBA stars and franchise owners.
the Wall Street newspaper got the scoop that BowX Acquisition Corp. – a PSPC launched last year by Bow Capital founder and owner of the Sacramento Kings, Vivek Ranadivé – who counts Shaquille O’Neal among his top advisers – made his first big success by merging with volatile real estate start-up WeWork.
It’s been about a year and a half since WeWork’s IPO collapsed among investors. Founder Adam Neumann was fired as CEO and SoftBank took over the assets of the coworking company. (Where’s the time going?) But as TechCrunch reported, WeWork slowly stabilized under new management, setting the table 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 what is known as a private investment in public equity, or PIPE, from Insight Partners, funds managed by Starwood Capital Group, Fidelity Management and others. “
As a reminder, SPAC stands for Special Purpose Acquisition Company, and is actually a blank check company created with an eye on specialist acquisitions for mutually lucrative public offerings. Which, while not as sexy as an NFT, could prove to be just as speculatively – and spectacularly – lucrative.