Adam Neumann, who founded flexible workspace provider WeWork in 2010; resigned nine years later, he is attempting to buy the company out of bankruptcy, according to multiple reports.
In a letter Published by The New York Times today, lawyers for Neumann, his latest startup Flow Global Holdings LLC, and its “affiliates” wrote that they were disappointed with WeWork’s “lack of commitment to even provide information” in response to efforts to be able to bid for the purchase of the company. The letter revealed that Neumann, Flow and affiliates were working with investors such as Dan Loeb’s hedge fund Third Point and “others.”
Neumann’s lawyers further claimed that he had “previously worked to arrange up to $1 billion in financing to stabilize WeWork in October 2022, when shortly before the meeting (while attendees were literally on the plane), the former CEO closed this process without explanation.”
WeWork, once valued at $47 billion, declared bankruptcy last November. The company at the time listed more than $18.6 billion in debt in what marked a stunning collapse for the once high-flying startup that had raised more than $22 billion from investors including SoftBank, BlackRock and Goldman Sachs. It had faced years of dealing with the fallout from a period of aggressive growth and global expansion that led to a portfolio of many underperforming properties.
When asked about the Neumann acquisition effort, WeWork told TechCrunch today: “WeWork is a great company. Therefore, we receive expressions of interest from external parties on a regular basis. We and our advisors always consider these approaches with a view to acting in the best interest of the company. We continue to believe that the work we are currently doing — addressing unsustainable rental costs and restructuring our business — will ensure that WeWork is best positioned as an independent, valuable, financially strong and sustainable company long into the future ».
Meanwhile, Third Point he told the Financial Times that he had held “only preliminary talks with Flow [Neumann’s property company] and Adam Neumann regarding their ideas for WeWork and is not committed to engaging in any transaction.”
Notably, Neumann’s new venture Flow, a rental-focused residential real estate arm, is backed by venture capital firm Andreessen Horowitz (a16z). In August 2022, the investment firm wrote its largest ever individual check of $350 million to Flow, so if Flow is successful in its bid to buy WeWork, a16z would potentially become a shareholder in the company.
