WeWork founder tries to reacquire bankrupt company five years after ouster

Adam Neumann, founder of the co-working giant WeWork, is making efforts to buy back the bankrupt company, according to a report from the New York Times.

Neumann's new real estate company, Flow Global, is in negotiations to acquire WeWork, and its assets, or provide debt financing. Despite being ousted from WeWork five years ago, Neumann is seeking to regain control.

Hedge fund billionaire Dan Loeb, known for taking over troubled businesses through his investment firm Third Point, is supporting Neumann in his bid to reclaim WeWork.

However, WeWork advisors are cautious about engaging in negotiations with the former CEO.

Neumann's lawyers expressed dissatisfaction with WeWork's lack of engagement and failure to provide necessary information for a potential bid or debt financing. WeWork currently faces a debt exceeding $4 billion.

The legal team's letter highlighted WeWork's previous rejection of Neumann's proposals and the abrupt shutdown of his attempt to secure up to $1 billion in financing in October 2022. The lawyers emphasised the potential synergies and management expertise that an acquisition could bring in a hybrid work environment.

WeWork responded, stating that it regularly receives expressions of interest from external parties and evaluates them in the company's best interests. The company believes ongoing efforts to address rent expenses and restructure the business will position WeWork as a strong and sustainable entity.

Adam Neumann founded WeWork in 2010, reaching a valuation of $47 billion by 2019.

However, the company's decline began with the failed initial public offering in 2019. After significant financial investments from SoftBank, WeWork went public through a special purpose acquisition company in 2021. The failed IPO resulted in Neumann's resignation as CEO and a substantial drop in WeWork's valuation.