WeWork’s Adam Neumann Wasn’t Very Good at M&A
The office-sharing pioneer’s prospectus, published ahead of its SPAC listing, shows what a big mess new boss Sandeep Mathrani has had to clean up.
Elevating the world’s consciousness
Photographer: VCG/Visual China Group via Getty Images
When WeWork last published an investment prospectus in 2019, potential IPO investors were horrified by the corporate excess and cash burn. Now as part of its second attempt to go public via a merger with blank-check company BowX Acquisition Corp., WeWork has published another one laying out everything that’s happened since then. Though lacking in the original’s grandiose claims about “elevating the world’s consciousness,” the new document doesn’t otherwise disappoint.
I won’t repeat my views here on WeWork 2.0: In short, new Chief Executive Officer Sandeep Mathrani has sketched out a plausible path towards profitability. He’s reset the office-sharing pioneer with what it calls a “cost-conscious mindset.” The company stands to benefit from the post-pandemic shift to more flexible working. Notably, unlike other SPACs that have announced transactions recently, BowX trades at a 25% premium to the value of the cash it holds, indicating investors like the deal.