WeWork lost $3B in 2020: report

Flex-office provider may try and go public again in 2021

National /
Mar.March 23, 2021 10:17 AM
WeWork CEO Sandeep Mathrani (Mathrani/Wikipemedia, Getty)

WeWork CEO Sandeep Mathrani (Mathrani/Wikipemedia, Getty)

Investors betting on WeWork’s second act just got a wake-up call.

The co-working company lost $3.2 billion last year as the Covid-19 health crisis slashed the demand for flexible office spaces, the Financial Times reported, citing documents shown to possible investors.

The pandemic caused WeWork’s occupancy rates to fall 47 percent in 2020, down from 72 percent at the beginning of the year, according to the documents reviewed by the publication. Its losses shrunk from $3.5 billion in 2019 as the firm reduced capital expenditure from $2.2 billion in 2019 to $49 million in 2020.

The pitch to investors — called “Project Windmill,” according to the report — comes ahead of WeWork’s possible IPO later this year. The company reportedly wants to go public via a special-purpose acquisition company, and is in talks with BowX Acquisition Corp, a blank-check firm led by Tibco founder Vivek Ranadivé that raised $420 million in August.

WeWork failed spectacularly in its last attempt to raise money on the public market, after its IPO filings revealed huge losses and millions of dollars in personal loans issued to its executives. In its latest pitch the company is touting itself as a technology platform, according to the Financial Times.

But the pitch to investors is quite ambitious: The company projects that occupancy will hit 90 percent by the end of 2022, and revenue will hit $7 billion by 2024, per the report.

[Financial Times] — Keith Larsen


Related Articles

arrow_forward_ios
Wendy Silverstein (Credit: Getty Images)
Wendy Silverstein, co-head of WeWork’s real-estate fund, is out
Wendy Silverstein, co-head of WeWork’s real-estate fund, is out
WeWork CEO Adam Neumann (Credit: Getty Images and iStock)
WeWork’s side businesses are fizzling
WeWork’s side businesses are fizzling
Sarah Pontius (Credit: Union College)
Another head rolls at WeWork
Another head rolls at WeWork
Sao Carlos CFO Fabio Itikawa. (Getty, YouTube via Levante Investimentos)
In pandemic-battered Brazil, 3G Capital founders hunt for real estate deals
In pandemic-battered Brazil, 3G Capital founders hunt for real estate deals
Tesla’s Gigafactory (Tesla)
Over 340M sf of industrial space set for delivery in 2021
Over 340M sf of industrial space set for delivery in 2021
Softbank CEO Masayoshi Son and Compass CEO Robert Reffkin (Getty, Compass)
SoftBank buys $72M of Compass stock
SoftBank buys $72M of Compass stock
The Wonder Wheel in Coney Island (Getty)
Coney Island Wonder Wheel reopens
Coney Island Wonder Wheel reopens
Gores Group’s Alec Gores and Dean Metropoulos with Sonder CEO Francis Davidson (Getty, Linkedin)
Sonder considers going public via SPAC
Sonder considers going public via SPAC
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...