Adam Neumann offers over $500 million to buy WeWork

Adam Neumann, co-founder of WeWork, once a high-flying office-sharing startup, has made an offer of more than $500 million to buy the company, Reuters reported on Tuesday.

Neumann previously took WeWork to a peak valuation of $47 billion before a series of strategic missteps and personal disputes led to his departure.

Details regarding the financing of Neumann’s bid remain unclear, as discussions are ongoing and confidential. Under Neumann’s leadership, WeWork has become the most highly regarded startup in the United States. However, its aggressive expansion strategy and unconventional conduct contributed to its failed initial public offering (IPO) attempt in 2019.

Reuters last month reported Neumann’s interest in acquiring WeWork, which sought bankruptcy protection in November, with backing from SoftBank.

“WeWork is an extraordinary company and it is no surprise that we regularly receive expressions of interest from third parties,” the company said in a statement.

“Our board of directors and our advisors review such approaches in the ordinary course, to ensure we always act in the best long-term interests of the company,” he added.

In response, WeWork said it remains focused on its ongoing restructuring as it seeks to “emerge from Chapter 11 in the second quarter as a financially strong and profitable company.”

Neumann, through his lawyers, has informed WeWork of his intentions to explore a collective offer for the company, in partnership with Daniel Loeb’s Third Point hedge fund and other investors.

However, Third Point clarified to Reuters that it had only entered into preliminary discussions with Neumann and his real estate company Flow, without committing any money to the offer.