Neil here, with another chapter in the WeWork saga.
Last week, the shared workspace company announced plans to go public via a merger with BowX Acquisition, a special purpose acquisition company (SPAC).
This news is the latest in an almost two-year long debacle for the company.
In September 2019, WeWork shelved its plans to go public following intense scrutiny by investors and analysts about its business model. Around the same time, former WeWork CEO Adam Neumann was ousted from his position.
The company, which was once valued at $47 billion, plummeted. SoftBank, which now owns a majority of the company, valued WeWork at just $2.5 billion as of June last year.
WeWork’s SPAC merger would value the company at around $9 billion, still a far cry from where it was at its peak.
Now, I could go on about the WeWork drama for ages, but the fact is that this news exposes a flaw in one of the hottest trends we’ve seen hit the markets over the last year.
SPACs are all the rage right now. It’s already such a confusing and unprecedented year for people who don’t know what to do with their money… and if you’re one of those people, I don’t blame you for looking into them.
Because don’t get me wrong. There are some excellent SPAC opportunities available, particularly from many of the SPACs that came out before the 2021 boom. Many of these SPACs are working with companies in the most exciting, burgeoning industries out there right now.
But my advice is to be careful. When it comes to SPACs, you’ve got to know the right places to look… because where there are great opportunities, there are also some questionable ones.
Many people have speculated that some SPACs may not be great investments, after all. They’re simply riding the high of the SPACs that came before them.
And across the news this week are reports that failing unicorns use SPAC mergers to bail out their venture capitalists and others who had invested since the beginning.
SPAC mergers don’t require the same amount of scrutiny and due diligence as traditional IPOs, meaning some companies can, in essence, slide under the radar. In terms of WeWork, which faced incredible scrutiny and criticism on its first attempt at going public, it makes sense that the company would pursue a SPAC merger this time around.
Despite this drawback, paying attention to just the hype might make you think all SPACs are great, no matter what. And sure, I think SPACs, as a whole, are still worth your consideration.
I don’t want to turn you away from them completely, because I truly believe that the right ones will revolutionize how companies raise capital and how investors see returns for years to come.
However, it’s important to have someone who can help you cut through all of the noise and focus on the best investment opportunities out there… whether they’re SPACs, stocks, startups, or anything else.
Right now, there’s no person I’d rather turn to than my friend Shah Gilani, the chief investment strategist over at Money Morning.
He’s dedicated to helping everyday folks (like you!) play some of the best market runs in history and help you make a whole lot of money in the process. He wants hardworking folks across the country to benefit from the same information that has helped the big guys line their pockets for decades.
Today, he’s lined up some brand-new strategies that can help you make critical decisions about your wealth and well-being for years to come.
He’s sharing all the details now, so click here to get the full scoop.
I’ll be back soon with another update.
Until next time,
Neil Patel
Last week, the shared workspace company announced plans to go public via a merger with BowX Acquisition, a special purpose acquisition company (SPAC).
This news is the latest in an almost two-year long debacle for the company.
In September 2019, WeWork shelved its plans to go public following intense scrutiny by investors and analysts about its business model. Around the same time, former WeWork CEO Adam Neumann was ousted from his position.
The company, which was once valued at $47 billion, plummeted. SoftBank, which now owns a majority of the company, valued WeWork at just $2.5 billion as of June last year.
WeWork’s SPAC merger would value the company at around $9 billion, still a far cry from where it was at its peak.
Now, I could go on about the WeWork drama for ages, but the fact is that this news exposes a flaw in one of the hottest trends we’ve seen hit the markets over the last year.
SPACs are all the rage right now. It’s already such a confusing and unprecedented year for people who don’t know what to do with their money… and if you’re one of those people, I don’t blame you for looking into them.
Because don’t get me wrong. There are some excellent SPAC opportunities available, particularly from many of the SPACs that came out before the 2021 boom. Many of these SPACs are working with companies in the most exciting, burgeoning industries out there right now.
But my advice is to be careful. When it comes to SPACs, you’ve got to know the right places to look… because where there are great opportunities, there are also some questionable ones.
Many people have speculated that some SPACs may not be great investments, after all. They’re simply riding the high of the SPACs that came before them.
And across the news this week are reports that failing unicorns use SPAC mergers to bail out their venture capitalists and others who had invested since the beginning.
SPAC mergers don’t require the same amount of scrutiny and due diligence as traditional IPOs, meaning some companies can, in essence, slide under the radar. In terms of WeWork, which faced incredible scrutiny and criticism on its first attempt at going public, it makes sense that the company would pursue a SPAC merger this time around.
Despite this drawback, paying attention to just the hype might make you think all SPACs are great, no matter what. And sure, I think SPACs, as a whole, are still worth your consideration.
I don’t want to turn you away from them completely, because I truly believe that the right ones will revolutionize how companies raise capital and how investors see returns for years to come.
However, it’s important to have someone who can help you cut through all of the noise and focus on the best investment opportunities out there… whether they’re SPACs, stocks, startups, or anything else.
Right now, there’s no person I’d rather turn to than my friend Shah Gilani, the chief investment strategist over at Money Morning.
He’s dedicated to helping everyday folks (like you!) play some of the best market runs in history and help you make a whole lot of money in the process. He wants hardworking folks across the country to benefit from the same information that has helped the big guys line their pockets for decades.
Today, he’s lined up some brand-new strategies that can help you make critical decisions about your wealth and well-being for years to come.
He’s sharing all the details now, so click here to get the full scoop.
I’ll be back soon with another update.
Until next time,
Neil Patel
Follow @angelsandentrepreneurs
