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WeWork in talks to go public as Knotel goes bankrupt

WeWork CEO Sandeep Mathrani (Credit: WeWork)

WeWork is in talks to go public via an SPAC in a deal that would value the struggling co-working company at $10 billion, according to the Wall Street Journal. The news comes more than a year after its high-profile failure to stage a traditional IPO. SoftBank valued the firm at $47 billion in 2019.

  • Worth Noting: WeWork’s board has been weighing offers from a blank check company affiliated with Bow Capital and at least one other unidentified acquisition vehicle. If a deal fails to materialize, CEO Sandeep Mathrani plans to raise a new private funding round.
  • On the home front: In recent weeks, the company closed and exited the following locations: Sapir Organization’s 261 Madison Avenue, Chetrit Group’s 404 Fifth Avenue and 428 Broadway, William Gottlieb Real Estate’s 1 Little West 12th Street; and Durst Organization’s 205 East 42nd Street.
  • Ironic timingRegus Corp. has increased the size of the chapter 11 loan it has extended to its indirect subsidiaries in bankruptcy from $97 million to $140 million. This gives them more time to negotiate with landlords to facilitate the reorganization of its North American portfolio. Shares of IWG (AKA Regus) have dropped 34% in the past 12 months.
  • Irony: WeWork competitor Knotel filed for chapter 11 bankruptcy for its U.S. business on Saturday, agreeing for the company to be taken over by real-estate services firm Newmark Group. [WSJ+TRD+Bloomberg]

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