Adam Neumann, the ousted co-founder of WeWork, has reportedly made a bid of over $500 million to regain control of the struggling office-sharing group. According to sources close to the matter, Neumann recently presented his offer, but there is uncertainty about how he plans to finance such a deal. Both the Wall Street Journal and CNBC have reported on this development.
Last month, Neumann sent a letter to WeWork expressing his intention to buy the company out of bankruptcy. This was confirmed by sources who have seen the letter, as reported by AFP. WeWork filed for bankruptcy in November, and its major creditors are now expected to take over the company.
At one point, WeWork was the largest private tenant of office space in Manhattan, with co-working spaces in cities all over the world. However, investors began to question not only the company's business model and rapid growth, but also Neumann's leadership abilities. Neumann, a charismatic figure, was known for making impulsive decisions.
In September 2019, the Board of Directors decided to remove Neumann from his position, shortly after the company's much-anticipated stock market debut was delayed. As part of his departure, Neumann received a $1.7 billion exit package, while the company's value plummeted to $8 billion.
The COVID-19 pandemic further exacerbated WeWork's troubles as offices remained empty due to remote work arrangements. The company was unable to fully recover from the impact of the pandemic.