On April 12, 2018, WeWork’s Adam Neumann and Fung Group Chairman Feng Guojing (right) attended a signing ceremony held at the WeWork Weihai Road store in Shanghai, China.
Jackal Pan | Visual China Group | Getty Images
Adam Neumann makes unsolicited takeover bid exceeding $500 million we work A person familiar with the matter told CNBC that the company has emerged from bankruptcy.
The bid could be as high as $900 million, pending due diligence, the person said.
Neumann’s financing is unclear, but people familiar with the matter told CNBC that Dan Loeb’s Third Point was not involved in the acquisition. Neumann’s attorney has previously said Loeb’s investment firm supports the WeWork founder’s proposal, but Third Point disputed that assertion in a previous statement.
The uncertainty of Neumann’s financing, combined with his track record at the company, could weaken WeWork’s receptiveness to his offer. Neumann, his family office Nazare and Andreessen Horowitz-backed real estate venture Flow filed a notice to appear in the WeWork bankruptcy case on Monday.
“Two weeks ago, a consortium of six financing partners, whose identities were known to WeWork and its advisors, submitted a potential bid significantly higher than the $500 million initially reported,” a Flow spokesperson said in a statement. ” Flow did not respond to CNBC’s request for comment on the potential $900 million bid.
A few weeks ago, news broke that Neumann had renewed interest in taking back the company he ousted five years ago. After years of struggles, WeWork filed for bankruptcy in 2023 and has been working with bankruptcy advisors to restructure and streamline the business.
“As we’ve said before, WeWork is an extraordinary company, and it’s no surprise that we regularly receive expressions of interest from third parties. Our board of directors and advisors review these approaches on a daily basis to ensure we are always following the right path. manner,” a WeWork spokesperson said in a statement on Monday.
Neumann’s bid, which was first reported by The Wall Street Journal, could complicate WeWork’s bankruptcy proceedings. The company is looking to reject a large number of leases, meaning it will be able to abandon long-term commitments in less profitable markets. Some WeWork lessors have resisted the efforts.
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