Technology
Tuesday, February 6th, 2024 6:26 pm EDT
Key Points
- Adam Neumann’s bid for WeWork: Neumann, the co-founder ousted from WeWork in 2019, aims to buy back the company out of bankruptcy, with support from prominent capital sources including Dan Loeb’s Third Point.
- Preliminary discussions and expressions of interest: While Neumann and his startup Flow have expressed sincere interest since December 2023 in acquiring WeWork or providing debtor-in-possession financing, Third Point clarified that discussions were preliminary and no financing commitment had been made.
- WeWork’s response and historical context: WeWork acknowledges receiving expressions of interest regularly and highlights ongoing efforts to address rent expenses and business restructuring. Neumann’s efforts to secure financing date back to October 2022, but WeWork advisors initially resisted his initiatives, later suggesting DIP financing instead of a term sheet. WeWork filed for bankruptcy in November 2023 amid financial struggles, leading to Neumann’s departure in 2019.
Adam Neumann, ousted co-founder of WeWork, seeks to reclaim the company by bidding to buy it out of bankruptcy, with purported support from notable capital sources including Third Point, led by Dan Loeb. However, Third Point clarified that discussions with Neumann were preliminary and no financing commitment had been made. Neumann, alongside his startup Flow, has been expressing interest in acquiring WeWork since December 2023, aiming to purchase the company and its leases or provide debtor-in-possession (DIP) financing. Despite WeWork’s acknowledgment of receiving expressions of interest regularly, Neumann’s efforts date back to October 2022 when he attempted to secure up to $1 billion in financing, which was rejected by then-CEO Sandeep Mathrani. Advisors resisted Neumann’s initiatives initially but later suggested DIP financing instead of a term sheet. WeWork filed for bankruptcy in November 2023 amid financial struggles, leading to Neumann’s departure in 2019 amidst governance and valuation concerns. Neumann and his counsel have not responded to requests for comment. WeWork emphasizes ongoing efforts to address rent expenses and business restructuring to ensure long-term financial strength. Third Point’s engagement with Neumann was first reported by the Financial Times, underscoring the complexity and uncertainty surrounding Neumann’s bid to reclaim WeWork.
For the full original article on CNBC, please click here: https://www.cnbc.com/2024/02/06/adam-neumann-is-trying-to-buy-bankrupt-wework-dealbook.html
