Adam Neumann, along with several partners, has put forward an offer to acquire WeWork out of bankruptcy for more than $500 million, marking a significant step towards the controversial founder potentially regaining control of his once-troubled startup.
Neumann, together with his real estate firm Flow, had arranged a financing package for the co-working company, as reported by Bloomberg News in February.
The Wall Street Journal recently revealed that Neumann's bid to buy the company exceeded $500 million, citing sources familiar with the matter.
According to a representative of Flow, "Two weeks ago, a coalition of half a dozen financing partners — whose identities are known to WeWork and its advisers — submitted a potential bid for substantially more than the Wall Street Journal reported."
This bid adds another twist to the ongoing saga of WeWork and its charismatic founder, which has been extensively covered in books, podcasts, a television series, and a movie.
WeWork, at its peak, achieved a valuation of $47 billion and became the largest private occupier of office space in Manhattan.
However, the company faced a downward spiral after its failed attempt to go public in 2019, which exposed significant losses and controversial business practices.
Neumann resigned from his position as CEO in the same year in an effort to save the company, but WeWork continued to struggle due to expensive office leases and the impact of COVID-19 lockdowns.
WeWork filed for bankruptcy last year, revealing $19 billion in liabilities and $15 billion in assets.
The specifics of how Neumann plans to finance the acquisition of WeWork, a provider of shared office space, were not immediately clear, according to the Wall Street Journal.
In response to the bid, WeWork stated in an email that it remains focused on emerging from Chapter 11 bankruptcy protection in the second quarter as a "financially strong and profitable company."
"WeWork is an extraordinary company, and it's no surprise we receive expressions of interest from third parties on a regular basis," the company said.
"Our board and our advisers review those approaches in the ordinary course, to ensure we always act in the best long-term interests of the company."
Previously, Neumann, along with other investors including Dan Loeb's Third Point, had explored the possibility of buying WeWork out of bankruptcy, as reported by Bloomberg last month.
However, sources familiar with the matter stated that Third Point is not involved in Neumann's current bid, and a spokesperson for the firm declined to comment.
Flow, Neumann's firm, received a $350 million investment from venture capital firm Andreessen Horowitz in 2022, valuing it at $1 billion. Flow operates multifamily residential properties that aim to foster a sense of ownership and community.
Despite challenges faced during the COVID-19 pandemic, WeWork experienced somewhat resilient demand for flexible work.
The company eventually went public in 2021 through a merger with a special purpose acquisition company (SPAC).
Before its bankruptcy filing, WeWork had been striving to transform into a stable, profitable public company, presenting a turnaround story to its stakeholders.