Reports have emerged suggesting that Adam Neumann, co-founder of WeWork, is making moves to buy back the flexible workspace provider, which filed for bankruptcy in November. Neumann, along with his latest venture, Flow Global Holdings LLC, and affiliated investors including Dan Loeb’s Third Point hedge fund, are reportedly involved in the bid.
According to a letter published in The New York Times by Neumann’s legal team, there has been frustration with WeWork’s lack of cooperation in providing necessary information for the buyout offer. The letter also reveals Neumann’s previous efforts to secure up to $1 billion in financing to stabilize WeWork in 2022, only for the former CEO to abruptly halt the process without explanation.
WeWork, once valued at an impressive $47 billion, succumbed to bankruptcy with over $18.6 billion in debt, following a period of rapid expansion and mounting challenges with underperforming properties.
In response to inquiries about Neumann’s buyback attempt, WeWork stated that they regularly receive expressions of interest from external parties and are committed to acting in the company’s best interests. Third Point, one of the potential investors, clarified that discussions with Neumann’s Flow were preliminary and no commitment had been made.
Notably, Neumann’s new venture, Flow, backed by Andreessen Horowitz (a16z), focuses on residential real estate rentals. Andreessen Horowitz made a substantial investment of $350 million in Flow in August 2022, making them a potential shareholder in WeWork if the buyout succeeds.