Adam Neumann offers more than $500 million to repurchase WeWork, according to source familiar with the matter

Adam Neumann offers more than 0 million to repurchase WeWork, according to source familiar with the matter

© Reuters. FILE PHOTO: A WeWork logo is seen outside its offices in the Queens borough of New York, U.S. November 7, 2023. REUTERS/Shannon Stapleton/File Photo

(Reuters) – Adam Neumann submitted an offer of more than $500 million to buy WeWork, the office-sharing company he co-founded and grew to a valuation of $47 billion before it fell into bankruptcy , a person familiar with the matter told Reuters. .

It’s unclear how Neumann plans to arrange financing for his bid, said the source, who requested anonymity because the discussions were confidential.

Neumann elevated WeWork to America’s most valuable startup, worth $47 billion, before its continued expansion at the expense of profits and revelations about its eccentric behavior led to his ouster in 2019 and derail what would have been a major IPO.

Last month, Reuters reported that founder Neumann was trying to buy the SoftBank-backed flexible workspace provider, which filed for bankruptcy in November.

“WeWork is an extraordinary company and it’s no surprise that we regularly receive expressions of interest from third parties,” WeWork said in a statement.

“Our board and advisors review these approaches in the normal course, to ensure that we always act in the best long-term interests of the company,” the statement added.

WeWork said it remains focused on its restructuring efforts to “emerge from Chapter 11 in the second quarter as a financially strong and profitable company.”

Last month, Neumann’s lawyers sent a letter to WeWork, saying he was exploring a joint bid for the company with Daniel Loeb’s hedge fund, Third Point, and other investors.

Third Point later told Reuters it had had “only preliminary conversations” with Neumann and his real estate company Flow and had made no financial commitments.

WeWork abandoned its IPO in 2019 after investors raised questions about its valuation and corporate governance arrangements that gave Neumann too much control.

The company racked up losses on its long-term rental obligations as more people began working from home during the COVID-19 pandemic and demand for office space fell.

The Wall Street Journal first reported Neumann’s offer Monday.

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