WeWork founder seeks to acquire the company.

Adam Neumann wants to acquire WeWork, the shared office space company that filed for bankruptcy in November 2023, Reuters sources said.

Flow Global, Neumann's real estate company, is seeking to acquire WeWork or its assets, as well as provide financing to support its operations during bankruptcy proceedings.

Neumann was the founder of WeWork. Under his leadership, the company was the most valuable startup in the US in 2019, valued at $47 billion. However, his strategy of pursuing growth at the expense of profitability, along with scandals regarding his management style, led to Neumann's dismissal.

On February 5th, DealBook reported that Neumann's lawyers had sent a letter to WeWork, confirming that the US venture capital firm Third Point would provide financial support for the deal.

Adam Neumann at a technology event in New York City in 2017. Photo: Reuters — Adam Neumann at a technology event in New York City in 2017. Photo: *Reuters*

According to Reuters , Third Point stated that it had only had "brief conversations" with Neumann and Flow and had not made any financial commitments.

WeWork also responded that they regularly receive offers like Neumann's and are considering all of them to best suit the company's interests. "We believe that what we are doing – addressing the cost of renting premises and restructuring the business – will ensure the company is in the best possible position. The goal is to help the company become financially independent, strong, and sustainable in the long term," the company said in its announcement.

On February 5th, WeWork's lawyers stated that the company might be forced to take out a loan due to slower-than-expected progress in rent negotiations.

Previously, in 2019, the most valuable startup in the US shared office space sector was in turmoil after its IPO failed. Two years later, the company went public through a merger with a special purpose acquisition (SPAC). However, over the past year, its stock has plummeted 99%, to just $0.30 per share.

WeWork is increasingly losing money due to long-term leases, amid a surge in remote work during the pandemic. To date, demand for office space has yet to recover.

In November 2023, the company filed for bankruptcy protection in the US. Just before this news broke, Neumann expressed confidence that, with the right strategy and team, the restructuring would help WeWork "successfully turn the tide."

Ha Thu (according to Reuters)

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