- BowX jumped nearly 7% Friday on news it will take WeWork public via a SPAC merger.
- The blank-check company will combine with WeWork in a deal that values the co-working company at $9.
- According to BowX’s SEC filings, it initially set out to acquire a company in the technology, media, adn telecommunications space.
- Sign up here for our daily newsletter, 10 Things Before the Opening Bell.
The blank check company that is set to take WeWork public jumped as high as 6.77% in early trading on Friday.
BowX Acquisition Corp traded above $10.37 a share Friday after an announcement that it will combine with WeWork in a deal that values the co-working company at $9 billion.
The transaction will be funded with BowX’s $483 million of cash in trust, WeWork said, in addition to an $800 million private investment group groups including Insight Partners, funds managed by Starwood Capital Group, Fidelity Management & Research Company LLC, Centaurus Capital, and funds and accounts managed by BlackRock.
The transaction is expected to close by the third quarter of 2021.
BowX was formed by the management of venture capital fund Bow Capital. Vivek Ranadiv, who also owns the NBA’s Sacramento Kings, and Murray Rode are the co-CEOs of the SPAC.
According to BowX’s SEC filings, the blank check company initially set out to acquire a business in the technology, media, and telecommunications industries. The company said it aimed to invest in a technology company that capitalizes on trends in digital transformation, but added that there was potential it would target a business in any industry, sector, or geographic location of choice.