Co-working leader WeWork scrapped plans for an IPO a couple years ago, but we recently learned the company is finally going public through a SPAC merger. Blank-check company BowX Acquisition Corp (NASDAQ:BOWX) is taking WeWork public, and at a significantly lower valuation than before its first IPO attempt collapsed. In thisFool Live video clip,recorded on March 29, Fool.com contributor Matt Frankel, CFP, andIndustry Focus host Jason Moser discuss the deal and what investors should keep in mind.
Jason Moser: Matt, just when you thought it was safe to forget about WeWork, it's back. Yes, the flexible office space specialist has decided it's time to go public again. Of course, Matt, it's going public via SPAC. Is WeWork going to give SPACs a bad name?
Matt Frankel: It depends. It's not in my portfolio, which is why I could talk about it right now. But so on one hand, it might look like you're getting a discount. WeWork first wanted to go public in 2019, if you remember. At the time, Goldman Sachs (NYSE: GS) said their valuation should be about $65 billion.
Frankel: The SPAC IPO that they're doing is at a valuation of $9 billion and that includes the new money being put in. Is that a discount or did it just like come back down to earth a little bit?