WeWork Makes its Debut on Wall Street After SPAC Merger

Shares of WeWork were soaring on Thursday after the company made its long awaited debut in the market.

The company went public through a special purpose acquisition company more than two years after its failed IPO.

Originally WeWork had planned for an IPO in 2019 but when investors became concerned over the company’s business model and founder Adam Neumann, who was also the former CEO, that came to a halt.

Earlier this year the company had a valuation of $9 billion, which was a big drop from the once $47 billion valuation it had from SoftBank Group in 2019.

WeWork has merged with BowX Acquisition Corp. and plans were first announced in March.

“You’ve said this is a story with drama,” WeWork Executive Chairman Marcelo Claure told CNBC’s “Squawk Box” on Thursday. “Sure, this is a story where a lot of people wrote documentaries that it was the end of WeWork. Well the resistance, the persistence of these people is incredible. This company is here, is stronger than ever, and no doubt that we’re going to be celebrating many more milestones.”

It was in August of 2019 that the company revealed it had lost $1.9 billion in 2018 and was running through remaining cash. The WSJ at the time had reported on the way Neumann was managing things and this included potential illegal activities.

It was the next month that Neuamann stepped down as CEO. CNBC then reported in October that he would get a package worth up to $1.7 billion to walk away from WeWork and give up his voting rights. Real estate executive Sandeep Mathrani later assumed the CEO role.

“WeWork is an amazing brand and if someone gives you a super brand to turn around, you’re going to have to say yes,” Mathrani told CNBC’s “Squawk Box.”

Claure told “Squawk Box” that everybody has “an important role to play” and that Neumann deserves credit as the visionary who came up with the idea.

“This has always been about the team and about what we did together, and we’re just so proud today and for this day,” he said.

Disclaimer: We have no position in any of the companies mentioned and have not been compensated for this article.