(Reuters) -WeWork lost $ 3.2 billion last year, a person familiar with the matter told Reuters, who revealed in a presentation that it was shown to potential investors as part of a $ 1 billion investment and a stock market.
The company’s losses were reduced by $ 3.5 billion in 2019 and is scheduled to be made public at a valuation of $ 9 billion, including debt through a merger with a special purpose acquisition company ( SPAC), according to a person directly informed about the presentation that was sent to new existing and potential investors.
An SPAC is a shell company that raises funds on an IPO with the goal of acquiring a private company, which is then made public as a result of the merger.
Reuters reported in January that WeWork was in talks to make public a merger with a SPAC and was exploring fundraising from private investors.
The company’s plans for a high-profile initial public offering exploded in October 2019 due to widespread criticism of its business model and management style from its founder Adam Neumann. Later, SoftBank Group Corp rescued the startup.
WeWork is now in talks with BowX Acquisition Corp., a blank check company that raised $ 420 million in August, according to the Financial Times, which first reported the news.
WeWork declined to comment on the report.
The report said WeWork predicted that employment would return to 90% by the end of 2022, from 47% at the end of last year when the COVID-19 pandemic closed its workspaces around the world. .
The company expects adjusted earnings before interest, taxes, depreciation and amortization of $ 485 million next year, the report added.
Reports of Uday Sampath and Anirban Sen in Bengaluru, additional reports of Aakriti Bhalla in Bengaluru; Edited by Aditya Soni and Sherry Jacob-Phillips