WeWork lost $3B in 2020: report

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

National /
Mar.March 23, 2021 11:30 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
Adam Neumann (Getty Images, iStock/Illustration by Steven Dilakian for The Real Deal)
Adam Neumann scores construction loan for Miami Worldcenter apartments, revealing site ownership
Adam Neumann scores construction loan for Miami Worldcenter apartments, revealing site ownership
From left: Pedro Villar, owner of Aloft Miami Brickell, along with his attorney Joe Pack (Newstar Media)
Aloft Miami-Brickell exits bankruptcy, staves off foreclosure
Aloft Miami-Brickell exits bankruptcy, staves off foreclosure
Partnership gone wrong? Receiver takes over Miami Beach hotel following alleged hostile takeover by an ex-partner
Partnership gone wrong? Receiver takes over Miami Beach hotel following alleged hostile takeover by an ex-partner
Partnership gone wrong? Receiver takes over Miami Beach hotel following alleged hostile takeover by an ex-partner
Pedro Villar of Sunview Companies with the hotel (Marriott, LinkedIn via Villar)
Owner of Aloft Miami Brickell hotel files for bankruptcy
Owner of Aloft Miami Brickell hotel files for bankruptcy
The Holiday Inn at 340 Biscayne Boulevard in Miami and attorney Linda Worton Jackson
Bankruptcy could lead to redevelopment of downtown Miami Holiday Inn
Bankruptcy could lead to redevelopment of downtown Miami Holiday Inn
 Adam Neumann (Getty, Bal Harbour Florida)
Ex-WeWork CEO Adam Neumann inks $44M deal for Bal Harbour properties
Ex-WeWork CEO Adam Neumann inks $44M deal for Bal Harbour properties
Fuse Group Investment CEO Eyal Peretz and attorney Michael Ehrenstein (Fuse, Ehrenstein Sager, Twitter via GUT Miami)
Fuse Group acquires Security Building in downtown Miami, plans to sue WeWork for alleged lease breach
Fuse Group acquires Security Building in downtown Miami, plans to sue WeWork for alleged lease breach
Russell Galbut and Michael S. Liebowitz (iStock)
Two SPACs led by Russell Galbut and Michael Liebowitz each file for $100M IPOs
Two SPACs led by Russell Galbut and Michael Liebowitz each file for $100M IPOs
arrow_forward_ios

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

Loading...