SPAC Shareholders Approve Deal That Will Take WeWork Public

Special purpose acquisition company

BowX Acquisition Corp.

BOWX 5.63%

said Tuesday its shareholders approved the previously announced business combination with shared-workspace company WeWork Inc.

BowX said the deal is expected to provide WeWork with cash proceeds of about $1.3 billion.

The merger is expected to close on or about Oct. 20, BowX said, adding shares of the combined company, to be named WeWork, are expected to begin trading on the New York Stock Exchange on Oct. 21.

An earlier attempt for an initial public offering of WeWork in 2019 was postponed by its then-parent company amid questions about the company’s corporate governance and how much it was worth. The company was eventually bailed out by

SoftBank Group Corp.

9984 4.40%

BowX Acquisition was formed by management of venture capital fund Bow Capital.

Private companies are flooding to special-purpose acquisition companies, or SPACs, to bypass the traditional IPO process and gain a public listing. WSJ explains why some critics say investing in these so-called blank-check companies isn’t worth the risk. Illustration: Zoë Soriano/WSJ

Newslebrity

Tech

SPAC Shareholders Approve Deal That Will Take WeWork Public

Shares of the combined company, to be named WeWork, are expected to begin trading on Oct. 21.

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