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Why WeWork's CEO Is Bullish On The Return To Offices Ahead Of Public Market Debut

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Why WeWork's CEO Is Bullish On The Return To Offices Ahead Of Public Market Debut

WeWork will make its public debut on the stock market via a SPAC deal with Bowx Acquisition Corp (NASDAQ: BOWX) at a time when the office space sharing company is starting to see improving trends.

'Pretty Optimistic': It might seem unusual for WeWork to make its public debut at a time when tens of millions of people are working from home and the path back to the office is unclear.

But in WeWork's case, the company's office sharing model implies access to information and data few, if any, others have, the company's CEO said. 

"There's going to be a huge shift in coming back to work, and we're a flex provider so we're completely the person who would see it first because we're plug-and-play," WeWork CEO Sandeep Mathrani said Friday on CNBC's "Squawk Box."

"We're starting to see, even in New York now, new activity, so we're pretty optimistic."

Now is a good time to take advantage of the early signs of momentum and raise additional liquidity given a "path to profitability," he said. 

"Sometimes the path picks you, you don't pick the path."

Related Link: SoftBank-Backed WeWork To Go Public Via SPAC Merger In $9B Deal

What BowX Saw In WeWork: On BowX's end, the SPAC team recognized the value that WeWork is able to offer in a post-COVID-19 environment.

Companies want to continue owning a corporate headquarters, but for others, "flex space is a must have," BowX chairman and co-CEO Vivek Ranadive said on "Squawk Box."

The pandemic was a "tailwind for flex space," and now more companies are reliant on WeWork than before, he said. 

The total addressable market for flexible office space worldwide could prove to be in the "trillions of dollars," and WeWork is a leader in the field and backed by a "world class superstar" CEO in Mathrani, who was the former CEO of Brookfield Properties' retail group, Ranadive said.

"If Zoom was the opportunity stock for the COVID era, we believe that WeWork is going to be the opportunity stock for the recovery." 

See also: Best Money Market Account Rates

BOWX Price Action: BowX Acquisition shares were trading 10.79% higher to $10.78 at last check Friday. 

Photo courtesy of WeWork. 

 

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