Adam Neumann is trying to buy WeWork, but Third Point says financing not committed

Real Estate

In this article

Adam Neumann, Founder and former CEO of WeWork.
Eduardo Munoz | Reuters

Billionaire Adam Neumann is trying to buy back bankrupt real-estate company WeWork, which he founded in 2010 and was ousted from in 2019, DealBook reported Tuesday.

Neumann, his startup Flow and Dan Loeb’s Third Point fund have “consistently expressed” a “sincere interest” since December 2023 to buy WeWork and its leases out of bankruptcy or provide debtor-in-possession, or DIP, financing, according to a letter obtained by Dealbook from Neumann’s counsel, Alex Spiro.

Those efforts have stretched even further back than December, according to the letter. Neumann had tried to arrange financing of up to $1 billion in October 2022 but was rebuffed by former CEO Sandeep Mathrani.

WeWork advisors resisted Neumann’s efforts but eventually suggested that Neumann provide DIP financing instead of a term sheet, according to the letter. It was not immediately clear from the letter if WeWork and Neumann’s team had signed an NDA, although the letter says that the two sides had been exchanging mark-ups on one.

WeWork filed for bankruptcy in November 2023 after years of financial struggles. Neumann stepped down in 2019 as the company faced mounting investor concerns over its corporate governance and valuation.

Third Point, Neumann and Spiro did not immediately respond to CNBC’s request for comment.

Read more on DealBook.

Articles You May Like

The 2 things that will drive the stock market after last week’s Trump-Fed rally
Anatomy of a deal: the University of Chicago’s Midwest winner
North Korea ‘supplying Russia’ with long-range rocket and artillery systems
D.C. arena deal hits headwinds
G20 waters down support for Ukraine amid pressure for peace talks