Five Firms Aid WeWork $9 Billion SPAC Deal in New Go-Public Bid

Morrison & Foerster is advising Softbank Group Corp., the largest investor in WeWork, as the office-sharing startup takes a second stab at going public—this time by merging with a special purpose acquisition company.

Skadden, Arps is counseling WeWork. Cooley is advising the SPAC, BowX Acquisition Corp., on the deal, expected to close in the third quarter. The agreement values the merged company at around $9 billion.

The March 26 transaction announcement comes about two years after WeWork’s first attempt at an initial public offering fell flat amidst investor skepticism about the company’s business model and its co-founder and CEO at the time, Adam Neumann, who has since departed. The company has also been hit hard by the Covid-19 pandemic.

The deal raises about $1.3 billion for WeWork, including $800 million in private placement investment with key investors including Insight Partners, funds managed by Fidelity Management & Research Company LLC, and funds and accounts managed by BlackRock, according to a statement.

Paul Hastings is acting as counsel to private placement agents. Willkie Farr & Gallagher said it represents Insight Partners.

The company’s new management said it has made significant progress transforming the business with a focus on cost management and smart digital innovations. It also said that WeWork is in an excellent position to benefit from accelerated demand for flexible workspace among all sizes of organizations because of the pandemic.