WeWork founder seeks to buy company

Adam Neumann wants to buy WeWork - the shared office provider that filed for bankruptcy in November 2023, Reuters sources said.

Flow Global - Neumann's real estate company is looking to buy WeWork or its assets, as well as provide financing to help it operate during bankruptcy.

Neumann is the founder of WeWork. Under his leadership, the company was the most valuable startup in the US in 2019, with a value of $47 billion. However, the strategy of pursuing growth at the expense of profits, along with scandals about his management style, led to Neumann's ouster.

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

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

Third Point told Reuters it had only had "brief talks" with Neumann and Flow and had not made any financial commitments.

WeWork also responded that it regularly receives offers like Neumann's and is considering all of them to ensure they are in the best interests of the company. "We believe the actions we are taking - addressing our lease costs and restructuring our business - will ensure we are in the best position to do so. Our goal is to be a company that is independent, financially strong and sustainable for the long term," the company said in a statement.

WeWork's lawyer said on February 5 that the company may be forced to take out a loan, as negotiations over rent progressed more slowly than expected.

Previously, in 2019, the most valuable startup in the US in the field of shared offices fell into chaos after its IPO plan failed. Two years later, the company went public through a merger with a special purpose acquisition company (SPAC). However, in the past year, this stock has lost 99% of its value, down to $0.30 per share.

WeWork has been losing money on long-term leases as more people work remotely since the pandemic began. Demand for office space has yet to recover.

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

Ha Thu (according to Reuters)

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