Adam Neumann pursues WeWork acquisition

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Adam Neumann, the co-founder of WeWork who was ousted from the company in 2019, is reportedly seeking to buy back the real estate company out of bankruptcy. Neumann’s bid is said to be supported by “well-known capital sources,” including Dan Loeb’s Third Point. However, Third Point clarified that it had only engaged in preliminary discussions with Neumann and had not committed to any financing for the deal.

The news of Neumann’s bid was first reported by DealBook, citing a letter from Neumann’s counsel. According to the letter, Neumann and his startup, Flow, have been expressing a sincere interest in acquiring WeWork and its leases since December 2023. The letter also mentioned Neumann’s previous attempts to arrange financing of up to $1 billion in October 2022, which were rebuffed by former CEO Sandeep Mathrani.

WeWork filed for bankruptcy in November 2023 after facing years of financial struggles. Neumann’s departure from the company in 2019 came amidst mounting investor concerns over its corporate governance and valuation.

Despite WeWork’s bankruptcy, the company’s spokesperson stated that they receive expressions of interest from external parties regularly and review them with the best interests of the company in mind. The spokesperson also emphasized the ongoing efforts to address unsustainable rent expenses and restructure the business for long-term sustainability.

(Source: NYT | BBC | Axios | FT)

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