Five years after WeWork's downfall, Adam Neumann, its ousted co-founder and CEO, hatched a plan to buy it out of bankruptcy. In a message For WeWork consultants he got it New York timesNeumann and his new real estate company Flow Global have expressed interest in purchasing the co-working space solution — but they claim WeWork has been ignoring attempts to get more information so they can make an offer.
Neumann and his real estate company Flow Global have been considering buying WeWork since December 2023, with the help of financing from Dan Loeb's hedge fund Third Point. However, as noted in the letter written by Neumann's attorney, Alex Spiro — the same person who represents Elon Musk — WeWork does not appear to be interested in entertaining Neumann's potential bid.
“We are writing to express our dismay that WeWork has not even engaged in providing information to my clients in what is intended to be a value-maximizing transaction for all stakeholders,” Spiro wrote. I wonder why? With Neumann at the helm of the $47 billion company He threw plans for an initial public offering in 2019. That's around the same time Neumann stepped down (but not before taking office) Paying $1.7 billionnaturally).
Japanese technology company SoftBank bought 80 percent of the company later that year. But ultimately, new leadership and funding weren't enough to save the company, as WeWork filed for bankruptcy last November. However, Neumann and his investors believe there is some hope.
“In a hybrid world where demand for the WeWork product must be greater than ever before… the synergies and management expertise provided by my client's acquisition could significantly exceed the value of the debtors on a standalone basis,” the letter said. .
The letter does not say how much Neumann and Co. would actually pay to acquire WeWork, but states that it is “prepared to make a detailed offer” to purchase WeWork or its assets. The only thing standing in their way is WeWork. As noted in the letter, the collapsed company had already rejected a $1 billion financing offer from Neumann in October 2022 — and I think that pretty much speaks for itself.
“Devoted student. Bacon advocate. Beer scholar. Troublemaker. Falls down a lot. Typical coffee enthusiast.”