Wework announces merger with BowX to go public

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They are projecting adj. EBITDA of 1.98 Billion in 2024 but they are assuming 85% occupancy to get that figure, so I don’t know how realistic that figure is. Wework is a much better company that last time it tried to go public and the new management has cut costs with a chainsaw. I still think it is a bad business. The pro-forma shares outstanding is 792.7 Million and at current prices, the company is valued at 8.8 Billion.

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Projecting a loss of 922M in terms of adj. EBITDA next year and then expects to generates adj.EBITDA profit of 428M in 2022. that means it won’t turn a profit for a long time, They have about 4 Billion dollars. The interest on those debt will probably wipe away most of the EBITDA. Also share compensation seems low and we can probably expect an increase after the IPO.

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