San Francisco, CA – Adam Neumann, former co-founder of WeWork, has recently submitted a conditional bid of around $600 million for the bankrupt co-working company he once led, according to sources familiar with the matter. Neumann, now heading his new property venture, Flow, has been actively seeking investors to support his bid to regain control of WeWork.
Flow, Neumann’s new company, confirmed the offer on Monday, revealing that a group of financing partners have put forward a potential bid two weeks ago. However, the identities of these partners have not been disclosed, leaving uncertainty surrounding the potential backing Neumann may receive.
Despite Neumann’s efforts to garner support, major investment groups like Third Point and Baupost Group have not been involved in the bid. This lack of involvement from established investors could present challenges for Neumann as he seeks to secure control of the company he helped establish.
WeWork, which filed for bankruptcy in November, has been in negotiations with creditors to outline a strategy for its exit from Chapter 11. While Neumann has expressed interest in acquiring the company, there have been no concrete plans from WeWork’s side to sell itself yet.
Neumann’s bid for WeWork, while significant, still needs to gain approval from creditors who will ultimately play a key role in determining the company’s future. The value of WeWork post-bankruptcy will heavily rely on negotiations with landlords and decisions regarding the closure of certain locations to manage costs effectively.
On the heels of Neumann’s bid, other potential investors have been closely monitoring WeWork’s financial situation and may opt to submit their own offers for the company. The preliminary offer from Neumann was first reported by The Wall Street Journal, shedding light on the complexities surrounding the potential acquisition of WeWork.