A recent report in the Wall Street Journal indicates that WeWork, the well-known co-working provider whose initial attempt at going public faced significant challenges in the autumn of 2019, is potentially considering a return to the public market through a merger with a special purpose acquisition company, or SPAC.

The WSJ reports that the New York-based company has been evaluating proposals from a SPAC connected to Bow Capital Management LLC, as well as at least one other unidentified prospective acquisition entity, for several weeks. A deal could potentially value WeWork at approximately $10 billion.

When contacted for further details, a company representative provided the same statement that was shared with the Journal: “WeWork has been consistently focused on achieving profitability over the past year. Our substantial progress, coupled with growing demand for flexible workspace solutions, demonstrates encouraging trends for our business. We will continue to assess opportunities that support our strategic objectives.”

Additionally, the company is also exploring possibilities for additional private investment, as indicated by a source familiar with the matter.

According to the WeWork spokesperson, the company currently holds over $3.6 billion in cash and available credit, including more than $875 million in readily accessible funds. They believe this financial position provides “sufficient liquidity to navigate an extended period of COVID-related challenges.”

The company has experienced considerable fluctuations in its fortunes since the scrutiny of its S-1 filing in August 2019, which revealed substantial losses and highlighted the significant influence of its co-founder and then-CEO, Adam Neumann.

Following pressure from the WeWork board for Neumann to relinquish some control, and his subsequent departure from the company, SoftBank, a major shareholder, assumed leadership. By October 2019, SoftBank had invested a significant $18.5 billion in WeWork, including funds allocated to a rescue package, and was committed to finding a solution to protect its investment.

By February 2020, SoftBank had appointed Sandeep Mathrani as Neumann’s replacement. Mathrani joined WeWork after serving for 1.5 years as CEO of Brookfield Properties’ retail group and as a vice chairman of Brookfield Properties. (Prior to his role with the Chicago-based firm, Mathrani spent eight years as CEO of General Growth Properties, a leading U.S. mall operator that Brookfield acquired for $9.25 billion in cash in 2018.)

The onset of COVID-19 soon impacted Mathrani’s plans for the company, as lockdowns and remote work became widespread. WeWork, which had already begun implementing layoffs, ultimately reduced its workforce by 8,000 employees, representing one-third of its total staff.

However, the company began to recover as the year progressed, as individuals working from home – often in limited spaces with family members – sought alternative work environments. Businesses reconsidering full-time office returns also began exploring co-working options.

By late October, Mathrani informed reporters that WeWork was on track to achieve profitability within the current year, and that once “profitable growth” was established, the company would “re-evaluate the IPO plan.”

Whether a conventional IPO was ever a realistic goal remains questionable.

“It’s unlikely many investment banks would be eager to undertake another roadshow for WeWork, given the company’s complex history,” states Zach Aarons, co-founder of the proptech venture firm MetaProp in New York. “The potential benefits of an IPO for WeWork don’t appear particularly compelling,” he adds.

WeWork’s potential acquisition options may also be constrained. A sale to a private equity firm is a possibility, but the most logical acquisition target – competitor IWG – has a market capitalization of $3 billion.

In essence, if WeWork aims for a $10 billion valuation – a figure Aarons, who has acquired a stake in the company through previous WeWork acquisitions, hopes to see realized – a SPAC appears to be its most viable path forward.

Bow Capital Management – identified as one of the SPACs pursuing WeWork – is led by Vivek Ranadive, the founder of Tibco Software.

In July, the firm filed plans for a $350 million blank-check company focused on acquiring a business within the technology, media, and telecommunications sectors.

Despite ongoing debate regarding WeWork’s classification, the company has consistently maintained that it is primarily a technology company, rather than a traditional real estate enterprise.