Former WeWork co-founder Neumann makes $500 million bid to repurchase struggling office-sharing giant
Former WeWork co-founder Adam Neumann has reportedly made a bid exceeding $500 million to repurchase the struggling office-sharing group, according to reports on Monday.
FollowFormer WeWork co-founder Adam Neumann has reportedly made a bid exceeding $500 million to repurchase the struggling office-sharing group, according to reports on Monday. While Neumann has submitted the offer, details regarding the financing of such a deal remain unclear, as per sources cited by the Wall Street Journal and CNBC.
Neumann's objective appears to involve acquiring the company out of bankruptcy, as indicated in a letter to WeWork that was reviewed by AFP last month. WeWork entered bankruptcy proceedings in November, with its primary creditors poised to assume control of the organization.
During its peak, WeWork stood as the largest private tenant of office space in Manhattan, boasting co-working spaces in numerous cities worldwide.
Investors grew increasingly apprehensive not only about WeWork's business model and rapid expansion but also about Adam Neumann's leadership reliability.
Neumann, a charismatic figure known for his occasionally impulsive decisions, faced dismissal by the Board of Directors in September 2019. This occurred shortly after the company's initial public offering was delayed.
Following his ousting, Neumann departed with a lucrative exit package totaling $1.7 billion, while WeWork's valuation plummeted to $8 billion.
The company's trajectory was further disrupted by the onset of the Covid-19 pandemic, which led to widespread office vacancies as employees transitioned to remote work. Despite efforts, WeWork never fully rebounded from these challenges.
