Former WeWork CEO Adam Neumann has expressed his desire to buy back the co-working company he founded five years ago. Neumann’s new venture, Flow Global, has sent a letter to WeWork advisers outlining his intention to negotiate a deal for the company or provide debt financing. However, WeWork advisers have been hesitant to engage with Neumann, citing a “lack of engagement” and failure to provide necessary information for an offer or financing.
This isn’t the first time WeWork has shut Neumann out of deals. In 2022, when he attempted to arrange financing, the then-CEO abruptly shut down the process without explanation. It was this kind of treatment that ultimately led to Neumann’s departure from WeWork in 2019, following the company’s failed attempt to go public. As part of his exit, Neumann negotiated an exit package worth nearly half a billion dollars.
Since Neumann’s departure, WeWork has been facing numerous challenges. With over $4 billion in debt, the company filed for Chapter 11 bankruptcy in November due to rising interest rates and declining demand for office space. SoftBank, a major creditor, had previously invested in WeWork before its collapse.
In the meantime, Neumann has shifted his focus to the residential real estate market through his new company, Flow Global. He secured $350 million in funding from Andreessen Horowitz in 2022 for this venture. Additionally, Neumann has gained support from hedge fund billionaire Dan Loeb in his efforts to regain control of WeWork.
Neumann’s lawyers argue that an acquisition of WeWork by their client could bring synergies and management expertise that would exceed the company’s standalone value in the current hybrid work environment. It remains to be seen whether WeWork advisers will warm up to Neumann’s proposition and engage in negotiations. With his past relationship with the company, this potential buyback attempt adds another twist to the ongoing saga of WeWork’s turbulent history.
