WeWork seeks $1 billion funding and SPAC merger as losses widen

WeWork reported a $3.2 billion loss in 2020 as the pandemic forced many of its coworking spaces to close, with occupancy dropping from 72 % to 47 %. The company is now pursuing a merger with BowX, a special‑purpose acquisition company that lists former NBA star Shaquille O'Neal among its advisors, and is looking to raise about $1 billion in new capital. WeWork hopes the deal will value the firm at roughly $9 billion, including debt, a steep cut from the $47 billion valuation it once sought.

SoftBank, WeWork’s largest shareholder, has continued to inject funds despite the firm’s legal and financial troubles, and a settlement with founder‑former CEO Adam Neumann will see him receive a $50 million payout (in addition to a prior $500 million from SoftBank) and step away from the board for a year. The SPAC plan follows a 2021 public listing and a series of cost‑cutting measures aimed at stabilising the business after years of rapid expansion and a dramatic fall in valuation.