Illustration: Rebecca Zisser/Axios
Co-working space giant WeWork filed for its IPO this morning, with a $1 billion cover price that's expected to at least triple. It also disclosed plans to secure a $6 billion credit facility concurrent with the offering, thus perhaps convincing some skeptical investors to swim past WeWork's sea of red ink.
$904 million net loss on around $1.5 billion in revenue for the first half of 2019.
WeWork reports 527,000 members, up from 268,000 at the end of June 2018 and 401,000 at the end of December 2018.
CEO Adam Neumann may be one of just three co-founders, but he controls the shares and the votes. He also didn't take a salary last year and agreed to lock up his shares for a year after the offering.
Neumann sat down with me at WeWork headquarters, one day before Uber's IPO, for an interview that Axios published here. That interview, plus a similar one with Business Insider, are listed as potential risk factors in the S-1.
WeWork has raised over $8 billion in venture capital since its 2010 founding, including an infusion earlier this year from SoftBank at a $42 billion valuation.
IWG, the London-listed company that operates Regus co-working facilities, reported around $1.57 billion in first-half 2019 revenue.
WeWork will be the most polarizing IPO of 2019, and that's saying something in a year that already saw Uber and Lyft.
Brookfield Business Partners (NYSE: BBU) agreed to buy a 57% stake in the listed Canadian unit of insurer Genworth Financial (NYSE: GNW) for C$2.4 billion, or C$48.86 per share (5.1% premium over yesterday's closing price).
🚑 Landos Biopharma, a Blacksburg, Va.-based biotech focused on autoimmune diseases like IBD, raised $60 million in Series B funding from RTW Investments, Osage University Partners, PBM Capital, and Perceptive Advisors. http://axios.link/udjG
• Cinq Music, a Los Angeles-based music rights management startup, raised $40 million in Series C funding from GoDigital Media Group. http://axios.link/fh82
• Clumio, a San Jose, Calif.-based provider of enterprise data backup solutions, disclosed a $40 million Series B round raised late last year from firms like Sutter Hill Ventures and Index Ventures. http://axios.link/NOjf
• Kobo360, a Nigerian freight logistics startup, raised $20 million in Series A funding led by Goldman Sachs. http://axios.link/xxgM
• Dostavista, a Russia-based same-day “crowdsourced” delivery service, raised $15 million in Series B funding. Vostok New Ventures led, and was joined by return backers Flashpoint and Addventure. http://axios.link/7gbv
• Kasten, a Los Altos, Calif-based cloud-native data management startup, raised $14 million in Series A funding led by Insight Partners. www.kasten.io
• OpenSpace, a San Francisco-based construction tech imaging startup, raised $14 million in Series A funding. Lux Capital led, and was joined by Goldcrest Capital, JLL Spark, Navitas Capital, Suffolk Construction, Tishman Speyer, WeWork, and Zigg Capital. http://axios.link/WjLa
• Properly, a Toronto-based residential real estate buying and selling platform, raised C$12 million co-led by Prudence Holdings and FJ Labs. It also secured a C$10 million debt facility. http://axios.link/rpag
• Systum, a Plano, Texas-based provider of wholesale inventory management software for SMEs, raised $10.7 million led by Octopus Ventures. http://axios.link/xRZT
• Secretlab, a Singapore-based maker of chairs for e-gamers, raised an undisclosed amount of funding from Temasek. http://axios.link/IsHP
• Battery Ventures acquired and plans to merge two companies: Forest2Market, a Charlotte-based provider of data and analytics to the global forest products industry, and Fisher International, a South Norwalk, Conn.-based provider of strategy consulting to the pulp and paper market. http://axios.link/5bXk
• BC Partners agreed to buy New York-based IT services company Presidio (Nasdaq: PSDO) for $2 billion, or $16 per share (21.3% premium to yesterday’s closing price). http://axios.link/weEY
• Brookfield Asset Management agreed to buy Australian retirement home operator Aveo Group (ASX: AOG) for A1.27 billion. http://axios.link/yQ3m
• Castle Harlan and Branford Castle Partners acquired Sunless, a maker of spray tanning equipment and accessories.
🚑 Equistone agreed to buy a majority stake in Omnicare, a German pharma wholesaler.
• Metco Landscape, a Denver-based portfolio company of Westhook Capital, acquired PGM, a Colorado Springs-based provider of commercial landscape maintenance services. www.metcolandscape.com
• Nuvei, a Montreal-based payment tech company owned by Novacap, acquired SafeCharge International (AIM: SCH), an Israel-based provider of omni-channel payments services, for US$889 million. http://axios.link/yxm6
• Pexco, a Johns Creek, Ga.-based portfolio company of AEA Investors, acquired HPE Extrusion Solutions, a Bally, Penn.-based manufacturer of custom profile, tube, and rod extrusions. www.pexco.com
🚑 AtriCure (Nasdaq: ATRC) agreed to buy SentreHeart, a Redwood City, Calif.-based maker of left atrial appendage closure devices, for upwards of $300 million in cash and stock. SentreHeart raised nearly $80 million from firms like Deerfield Management, Prospect Venture Partners, USVP, Decheng Capital, and Vivo Capital. http://axios.link/ismH
• Bernhard Capital Partners sold Atlas Technical Consultants, an Austin, Texas-based engineering services firm, to a SPAC called Boxwood Merger Corp. (Nasdaq: BWMC). http://axios.link/uto6
• Roark Capital is considering a sale of automotive services franchiser Driven Brands for upwards of $2 billion, per Bloomberg. http://axios.link/lgWT
• Anbang Insurance Group is seeking a buyer for its $2.4 billion Japan property portfolio, which is primarily residential, with former owner The Blackstone Group expressing interest, per Reuters. http://axios.link/bCBP
• Cocokara Fine (Tokyo: 3098) is in talks to merge with MatsumotoKiyoshi (Tokyo: 3088) in order to create Japan’s largest discount pharmacy chain, per Nikkei. http://axios.link/e5P8
• Formant, a San Francisco-based provider of robot fleet management software, acquired Pittsburgh-based robot teleoperation company Formation. Formant last year raised $6 million in Series A funding led by SignalFire. http://axios.link/uooR
⚽ Joe Roth, a Hollywood producer, sold his minority stake in the Seattle Sounders soccer club to an investor group that includes Microsoft execs Satya Nadella and Amy Hood, plus quarterback Russell Wilson, and musicians Ciara and Macklemore. http://axios.link/Zoxr
• Third Point, the hedge fund led by Dan Loeb, slightly cut its stake in United Technologies (NYSE: UTX) from to , after publicly opposing its proposed merger with Raytheon (NYSE: RTN). http://axios.link/CLDE
• Romain Lanier joined Perella Weinberg Partners as a London-based managing director focused on financial restructurings. He previously was with PJT Partners. www.pwpartners.com
CBS and Viacom formally announced their merger yesterday, creating a media giant with more than $28 billion in annual revenue.