Office-sharing startup WeWork reported narrower losses of $3.2 billion last year as a pitch to gain $1 billion in new investments, according to a report.
- WeWork plans to go public at a valuation of $9 billion including debt through a merger with a special purpose acquisition company (SPAC).
- The company’s plans for a maiden offering in October 2019 were stalled due to criticisms over its business model and the management style of its founder Adam Neumann. Losses then were at $3.5 billion.
- WeWork was earlier bailed out by the SoftBank Group Corp. It is now in talks with blank-check company BowX Acquisition Corp., which raised $420 million in August.
- The startup forecasts occupancy to rebound to 90% by end-2022 versus 47% at end-2020 when working spaces were shut due to the COVID-19 pandemic. It also expects EBITDA at $485 million in 2022.