Adam Neumann, the ousted CEO and cofounder of WeWork, is positioning his new venture Flow to potentially outbid rivals for the struggling coworking giant.
WeWork has revealed its ambitious plan to exit Chapter 11 bankruptcy in the U.S. and Canada by May 31. However, according to a report published by The Financial Times, WeWork requires as much as $400 million to viably emerge from bankruptcy. Unnamed sources told the publication that if WeWork is not able to raise capital, it will have to sell to the highest bidder.
On Wednesday Alex Spiro, an attorney for Flow, told The Financial Times that the company and its financial partners are ready to outbid any existing offers WeWork has received by 10%.
Last month, Neumann very publicly submitted a bid of over $500 million to buy back WeWork. Neumann stepped down as CEO in 2019 amid a significant drop in WeWork’s valuation following the company’s initial public offering (IPO). 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.
It’s reported that WeWork is actively seeking new funding sources to improve its financial position and enable the acquisition of additional prime office locations.
The success of WeWork’s fundraising efforts and Neumann’s ability to outmaneuver competitors will play a dramatic role in determining the company’s future trajectory. As the overall footprint of rival flexible office solutions increases throughout the U.S., WeWork’s potential sale to Neumann’s new firm is looking more realistic.
