Adam Neumann makes a $500 million bid for WeWork that could hit $900 million if financing and diligence firm up

Real Estate

Adam Neumann of WeWork and Victor Fung Kwok-king, right, chairman of Fung Group, attend a signing ceremony at WeWork’s Weihai Road location on April 12, 2018 in Shanghai, China.
Jackal Pan | Visual China Group | Getty Images

Adam Neumann has submitted an unsolicited bid in excess of $500 million to acquire WeWork out of bankruptcy, a person familiar with the matter told CNBC.

Pending due diligence, that bid could go up to $900 million, the person said.

Neumann’s financing was not immediately clear, although another person familiar with the matter told CNBC that Dan Loeb’s Third Point was not involved in the offer. Neumann’s counsel had previously said that Loeb’s investment firm was backing the WeWork founder’s offer.

The offer comes weeks after it emerged Neumann had renewed interest in taking back the company he was ousted from five years ago. WeWork filed for bankruptcy in 2023 after years of struggles, and has been working with bankruptcy advisors to restructure and streamline the business.

“Two weeks ago, a coalition of half a dozen financing partners — whose identities are known to WeWork and its advisors — submitted a potential bid for substantially more than The Wall Street Journal reported without contacting us,” a Flow spokesperson said in a statement.

“As we’ve said previously, WeWork is an extraordinary company and it’s no surprise we receive expressions of interest from third parties on a regular basis. Our Board and our advisors review those approaches in the ordinary course, to ensure we always act in the best long-term interests of the company,” a WeWork spokesperson said Monday in a statement.

Neumann’s bid, which was first reported by the Wall Street Journal, may complexify WeWork’s bankruptcy proceedings. The company is seeking to reject numerous leases, meaning it would be able to walk away from longer-term commitments in less lucrative markets. Some of WeWork’s lessors have fought those efforts.

Products You May Like

Articles You May Like

China’s imports unexpectedly drop in June, but exports beat forecasts
Space station startup Gravitics lands $125 million order from Axiom
Watch Fed Chair Jerome Powell testify live before the House financial services panel
China gears up for next week’s Third Plenum meeting. Here’s why real estate isn’t likely the main focus
Medical debt carries less weight on credit reports. But it’s still a burden for consumers

Leave a Reply

Your email address will not be published. Required fields are marked *