Ousted former chief executive of WeWork Adam Neumann has made a $500m (£395m) conditional offer to buy back the troubled flex company, it has been reported.
Neumann, with backers for his new company Flow, are understood to have pulled together a finance package to buy the WeWork business out of bankruptcy.
New York-based WeWork filed for bankruptcy last year, listing $19bn of liabilities and $15bn of assets.
Neumann’s Flow, which operates multifamily residential in the US, is backed with $350m of investment from venture capital firm Andreessen Horowitz. It was valued at $1bn in 2022, before it had even begun operations.
Neumann’s lawyers first sent a letter to WeWork’s advisers in February saying that he was exploring a bid in partnership with hedge fund Third Point. However, according to the Wall Street Journal, which broke the news of the $500m offer last night, Third Point is now not involved.
A WeWork spokesperson said: “As we have said previously, WeWork is an extraordinary company and it is no surprise we receive expressions of interest from third parties on a regular basis. Our board and our advisers review those approaches in the ordinary course, to ensure we always act in the best long-term interests of the company. WeWork remains intensely focused on finishing the important work we began back in November, and believe we will emerge from Chapter 11 in the second quarter as a financially strong and profitable company.”
Photo by Mark Lennihan/AP/Shutterstock (9323311a)
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