Co-founder Adam Neumann plans to acquire WeWork: Report

Neumann to acquire WeWork: Adam Neumann, the co-founder of WeWork who resigned in 2019 amidst controversy, is reportedly seeking to acquire the company out of bankruptcy, as per various reports.

In a letter addressed to WeWork and published by The New York Times, attorneys representing Neumann, his latest venture Flow Global Holdings LLC, and associated entities expressed disappointment with WeWork's lack of cooperation in providing information necessary for making a potential offer. The letter disclosed that Neumann, along with Flow and affiliated investors including Third Point hedge fund managed by Dan Loeb, were exploring the possibility of a buyout.

Neumann's legal team also claimed that he had previously arranged up to $1 billion in financing to stabilise WeWork in October 2022, only for the former CEO to halt the process without explanation abruptly.

WeWork, once valued at $47 billion, filed for bankruptcy in November last year with over $18.6 billion in debt. This marked a dramatic fall for the company, which had raised significant capital from investors like SoftBank, BlackRock, and Goldman Sachs. WeWork's challenges stemmed from aggressive expansion efforts that led to an extensive portfolio of underperforming properties.

In response to inquiries about Neumann's buyback attempt, WeWork stated that it regularly receives expressions of interest from external parties and reviews them with the company's best interests in mind. Meanwhile, Third Point indicated that it had engaged in preliminary discussions with Flow and Neumann but had not committed to any transaction.

Neumann's latest venture, Flow, a residential real estate company focused on rentals, is backed by venture firm Andreessen Horowitz (a16z). If successful in acquiring WeWork, a16z would likely become a shareholder in the company, given its substantial investment in Flow.