Adam Neumann is trying to buy back WeWork

Adam Neumann, the co-founder of WeWork, is reportedly seeking to buy the real estate company out of bankruptcy. Neumann was ousted from the company in 2019, and he has now expressed his interest in acquiring WeWork with the support of “well-known capital sources,” including Dan Loeb’s Third Point hedge fund. However, Third Point has stated that it has not committed any financing to the deal and that discussions with Neumann are only preliminary.

Neumann and his startup Flow have been expressing their interest in buying WeWork since December 2023, according to a letter from Neumann’s counsel, Alex Spiro. The letter also mentions that Neumann had previously attempted to secure financing of up to $1 billion in October 2022 but was rejected by former CEO Sandeep Mathrani.

WeWork filed for bankruptcy in November 2023 after facing financial challenges for several years. Neumann’s departure in 2019 was prompted by investor concerns about the company’s corporate governance and valuation.

WeWork has confirmed that it receives expressions of interest from external parties regularly and that it reviews them with the best interests of the company in mind. The company’s spokesperson stated that WeWork is focused on addressing its rent expenses and restructuring its business to ensure its future financial strength and sustainability.

There is no information available regarding whether WeWork and Neumann’s team have signed a non-disclosure agreement (NDA), although the letter suggests that the two parties have been exchanging markups on a document.

The details of Third Point’s involvement in Neumann’s bid were first reported by the Financial Times. However, Third Point has clarified that it has only had preliminary conversations with Flow and Neumann and has not made any commitment to participate in the transaction.

It remains to be seen how the potential acquisition of WeWork by Adam Neumann will progress, as the discussions are still in the early stages.