Adam Neumann, the ousted co-founder and former CEO of WeWork, has submitted a bid of over $500 million to regain control of the troubled flexible workspace provider.
According to a report published by The Guardian, Neumann’s new property company, Flow, submitted the potential bid for WeWork on Monday.
The development comes at a time when WeWork faces numerous challenges related to its Chapter 11 bankruptcy filing, filed in November 2023. The process has included massive lease negotiations — as well as dropping many others — as the company works to downsize, and shift focus to key global markets.
Since the court filing, WeWork has assumed 21 leases and rejected 93. However, the North American markets are particularly concerning for the company, as more than half of the company’s locations remain in limbo.
The dire financials of WeWork have prompted interested parties, including online rental platform Rentberry, and Neumann’s Flow, to take proactive steps moving towards a making potential bid — even though WeWork has publicly stated that it is not interested in a buyout.
The financing behind Neumann’s offer is also not immediately clear. However, a report published by CNBC suggests Dan Loeb’s Third Point was not involved in the offer. While discussions with potential investors like Third Point have reportedly taken place, no firm financial commitments have been made towards a potential deal.
Nevertheless, Neumann’s Flow, which is backed by venture capital firm Andreessen Horowitz, has put forward a potential bid for WeWork in a move that showcases Neumann’s persistence to retake the reins of the company he co-founded back in 2010. It’s reported by CNBC that the bid could increase up to $900 million pending due diligence.
According to a report published by Reuters, Neumann’s official offer comes just weeks after he very publicly expressed interest in making a bid.
WeWork, once valued at $47 billion, has seen its fortunes diminish in recent years due to a combination of factors — including high interest rates and the impact of remote work opportunities. Neumann’s audacious bid also comes after months of attempts to engage with WeWork, exploring various strategies such as providing debt financing.
