Adam Neumann bids over $500 million to buy back WeWork, source says By Reuters

© Reuters. FILE PHOTO: A WeWork emblem is seen outdoors its workplaces within the Queens borough of New York Metropolis, U.S., November 7, 2023. REUTERS/Shannon Stapleton/File Picture

(Reuters) -Adam Neumann has submitted a bid of greater than $500 million to purchase again WeWork, the office-sharing firm he co-founded and propelled to a $47 billion valuation earlier than it fell into chapter 11, an individual acquainted with the matter informed Reuters.

It is not clear how Neumann is planning to line up financing for his bid, the supply mentioned, requesting anonymity because the discussions had been confidential.

Neumann raised WeWork to be essentially the most helpful U.S. startup, price $47 billion, earlier than his pursuit of enlargement on the expense of revenue and revelations about his eccentric conduct led to his ouster in 2019 and derailed what would have been a serious preliminary public providing.

Final month, Reuters reported founder Neumann was attempting to purchase again the SoftBank-backed versatile workspace supplier, which had filed for chapter in November.

“WeWork is a unprecedented firm and it is no shock we obtain expressions of curiosity from third events frequently,” WeWork mentioned in a press release.

“Our board and our advisors assessment these approaches within the peculiar course, to make sure we at all times act in the very best long-term pursuits of the corporate,” it added.

WeWork mentioned it stays centered on its restructuring efforts to “emerge from Chapter 11 within the second quarter as a financially sturdy and worthwhile firm”.

Final month, Neumann’s attorneys despatched a letter to WeWork, saying he was exploring a joint bid for the corporate with Daniel Loeb’s hedge fund Third Level and different buyers.

Third Level later informed Reuters it had held “solely preliminary conversations” with Neumann and his property firm Circulate and had not made any monetary commitments.

WeWork scrapped its IPO in 2019 after buyers raised questions on its valuation and company governance preparations that gave Neumann an excessive amount of management.

The corporate racked up losses on its long-term lease obligations as extra individuals started working from house in the course of the COVID-19 pandemic and demand for workplace house plunged.

The Wall Avenue Journal first reported on Neumann’s bid earlier on Monday.