Adam Neumann, co-founder of WeWork, is reported to be making moves to acquire the company out of bankruptcy, according to various reports.
A letter published by The New York Times today, written by lawyers representing Neumann, his latest venture Flow Global Holdings LLC, and their associates, expressed disappointment with WeWork’s lack of co-operation in providing the necessary information for a potential buyout proposition.
The letter also unveiled that Neumann, Flow and their associates are collaborating with investors, including Dan Loeb’s hedge fund Third Point, among others.
WeWork, once valued at an astounding $47 billion, declared bankruptcy last November, listing debts of over $18.6 billion, marking a dramatic downfall for the previously high-performing start-up.
Neumann’s lawyers allege that he attempted to arrange up to $1 billion in financing to stabilise WeWork in October 2022, but the deal was mysteriously shut down by the former CEO just before the meeting took place.
WeWork mentioned that the workspace provider often receives expressions of interest due to its extraordinary nature. The company and its advisors are allegedly always reviewing opportunities with the company’s best interests in mind.
Meanwhile, Third Point has communicated to the Financial Times that it has only conducted preliminary conversations with Flow and Neumann regarding WeWork and hasn’t yet committed to any transaction.
Remarkably, Neumann’s new venture, Flow, a company focusing on rental residential real estate and backed by venture firm Andreessen Horowitz (a16z), could potentially make a16z a shareholder in WeWork if Flow’s buyout attempt is successful.
In August 2022, the investment firm wrote its largest individual cheque ever, amounting to $350 million, to Flow.
