According to The New York Times’ DealBook, Adam Neumann, co-founder of WeWork Adam Neumann is considering to purchase a now bankrupted WeWork (OTCMKTS:WEWKQ). In a letter obtained by DealBook, Alex Spiro, an attorney who has previously represented Elon Musk, informed WeWork’s legal team of Neumann’s interest in acquiring the company through his new real estate venture, Flow Global. Neumann’s bid is said to involve partnering with capital providers, including Dan Loeb’s Third Point.
The letter reveals that Neumann has engaged in discussions with WeWork since December, exploring options such as acquiring the company or its assets, as well as providing financing. It also outlines a formal proposal for a $200 million debtor-in-possession agreement. However, the letter accuses WeWork of inadequately responding to Neumann’s attempts to repurchase the company by withholding requested information.
WeWork, once valued at $47 billion, filed for bankruptcy in November last year after a series of setbacks, including its failed initial public offering in 2019, which led to Neumann stepping down as CEO due to criticism of his management style.
Neumann’s potential return to WeWork draws parallels to Steve Jobs’ reappointment as CEO of Apple. Jobs, who had previously left Apple to start NeXT, returned to the company after NeXT was acquired by Apple. His return heralded a period of innovation, including the development of the iPhone, before his eventual resignation in 2011.
In response to inquiries from various news outlets, a WeWork spokesperson acknowledged the company’s ongoing discussions with external parties but emphasized their commitment to the company’s current restructuring efforts aimed at ensuring long-term financial stability and independence.
According to a restructuring plan submitted on Sunday, WeWork disclosed a secured debt exceeding $4 billion. Experts informed the Times that the company’s potential sale price might plummet to as low as $500 million, representing only a fraction of its secured debt.
