Adam Neumann submits unsolicited bid of over $500 million for acquisition we work A person familiar with the matter told CNBC.
Bids could be as high as $900 million, pending due diligence, the person said.
Mr. Neumann’s funding was not immediately clear, but a person familiar with the matter told CNBC that Dan Loeb’s Third Point was not involved in the proposal. Mr. Neumann’s lawyers previously said Mr. Loeb’s investment firm supported the WeWork founder’s proposal, but Third Point disputed that claim in an earlier statement.
Uncertainty surrounding Mr. Neumann’s funding and his track record at the company could dampen acceptance of WeWork’s offer. Mr. Neumann, his family firm Nazareth, and Flow Inc., a real estate venture backed by Andreessen Horowitz, filed notices to appear in WeWork’s bankruptcy proceedings on Monday.
“Two weeks ago, a coalition of six lending partners whose identities were known to WeWork and its advisors closed a transaction for an amount significantly more than the $500 million originally reported,” a Flow spokesperson said in a statement. “We have offered the possibility of making a bid.” . Flo did not respond to CNBC’s request for comment on the possible $900 million bid.
The offer comes weeks after it emerged Mr Neumann had expressed renewed interest in taking back the company from which he was ousted five years ago. WeWork filed for bankruptcy in 2023 after years of struggle and has been working with bankruptcy advisors to restructure and streamline its business.
“As we have previously stated, WeWork is an extraordinary company, and it is not surprising that we regularly receive expressions of interest from third parties. “WeWork’s long-term interests are in our best interest,” a WeWork spokesperson said in a statement Monday.
Mr. Neumann’s bid, first reported by the Wall Street Journal, could complicate WeWork’s bankruptcy process. The company is turning down a number of leases, meaning it can exit long-term contracts in less profitable markets. Some WeWork lenders have fought these efforts.